Key insights
- Citigroup is reportedly considering acquiring a US regional bank to increase deposits, sparking discussions with regulators. While potentially streamlining operations, the news raises concerns about Citigroup's financial health and the stability of regional banks, contributing to negative sentiment in the banking sector and a slight bearish signal for US equities.
March 27 (Reuters) - Citigroup’s top executives are weighing buying a U.S. regional bank, Bloomberg News reported on Friday, as the Wall Street giant looks to wrap up a years-long effort to streamline its sprawling operations.
"Senior leaders of the New York-based firm have held preliminary discussions in recent months about trying to acquire a major U.S. regional lender to dramatically ramp up deposits," the report said, citing people familiar with the matter.
"Some executives broached the possibility of a takeover during a meeting with US regulators this year," according to the report.
Shares of the bank were last down 4.5% in afternoon trading.
Citigroup did not immediately reply to Reuters’ request for comment .