Citigroup has finalized its purchase of TD Waterhouse’s capital markets arm, adding new broker-dealer client relationships to its equities business. No details have yet been released about the deal, although Citigroup has said that the acquisition is in line with its current strategy of developing its distressed equities product group become a bigger player in the market.
“This is an important step in the ongoing effort to grow our equities business and expand our trading platform which will ultimately result in greater execution flexibility for our clients,” says Jim O’Donnell, head of US Equities at Citigroup Corporate and Investment Banking. It is expected that around 23 current TD Waterhouse employees will join Citigroup in equity trading and other roles, with the former head of TD Waterhouse’s capital markets business, Gene Wolfson, becoming Citigroup’s new head of distressed equities and international broker-dealer sales.
The deal marks Citigroup’s desire to become a greater presence the distressed equity market, where stock from underperforming companies is bought up on the assumption that it is under-priced.