Citigroup, the third-largest U.S. bank by assets, has started an investment banking joint venture in China that will give it access to the world’s second-biggest market for share sales, according to Businessweek.
The venture will be called Citi Orient Securities and will be based in Shanghai.
Citi is the world’s third-biggest underwriter of equity sales this year. It has lagged behind rivals Goldman Sachs and UBS in forming a venture in China. Chief Executive Officer Vikram Pandit is grappling with a revenue slump in trading and investment banking blaming the European sovereign-debt crisis and a faltering global economy as the culprits.
“This is the final piece of the jigsaw for the corporate investment bank in China,” Stephen Bird, Citigroup’s chief executive officer for Asia-Pacific, said at a briefing in Shanghai today. “I don’t think we are a latecomer; this is still the beginning for China.”
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RBS faces a U.S. investigation for money laundering. [Telegraph]
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Fortress’s Q2 profit that was helped by private equity. [Businessweek]
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Book review – Wall Street Women: How Women Crashed the Boys’ Club of High Finance. [Businessweek]