New York, Jan 28, 2026, 15:45 ET — Regular session
- Citigroup shares dipped in late New York trading as major U.S. banks showed a mixed performance.
- The Federal Reserve kept rates unchanged, shifting attention to when rate cuts might begin in 2026 and the impact on bank margins.
- Citi revealed new leadership changes in corporate and investment banking amid a fresh lawsuit targeting its wealth division.
Citigroup shares dipped 0.9% to $113.73 late in the afternoon, after earlier reaching $115.70. JPMorgan held steady, Bank of America dropped roughly 1.2%, and Goldman Sachs inched up.
This matters because banks are once again reacting to every little shift in the rate outlook. Even minor changes in yields can affect a lender’s net interest margin — the difference between what it earns on loans and pays on deposits — directly impacting earnings.
Citi faces a tougher reality than what its numbers suggest. The bank remains deep in a lengthy clean-up and is simultaneously working to refine its pitch to corporate clients while grappling with new scrutiny over its wealth business.
The Federal Reserve kept its benchmark rate steady at 3.50%-3.75% on Wednesday, noting that inflation “remains somewhat elevated” while economic activity is expanding solidly. Omair Sharif, president of Inflation Insights, called the statement “somewhat more optimistic” on the labor market, though the Fed tied future moves closely to incoming data. (Reuters)
Just a day prior, Citi unveiled a shuffle in its corporate and investment banking ranks, appointing Jason Rekate and John Chirico as global chairs for corporate and investment banking. Marcelo Marangon and Kaleem Rizvi stepped in as co-heads of corporate banking, with Marangon shifting to New York and Rizvi heading to London, according to an internal memo. (Reuters)
Citi’s wealth division is under scrutiny after the bank asked a federal court in Austin, Texas, to shift a former managing director’s harassment lawsuit to arbitration — a private process that keeps details out of public court records. In its petition, Citigroup insisted there is “absolutely no factual or legal basis” for the claim. The plaintiff’s attorney dismissed the move as retaliatory. Wealth chief Andy Sieg is not named in the Manhattan lawsuit. (Reuters)
The broader market held steady, with the S&P 500 brushing the 7,000 mark earlier as investors bet on the AI-driven rally. Jeff Leschen, managing director at Bramshill Investments, noted that for the momentum to last, AI spending needs to show up in actual revenue. He also pointed out that anticipated Fed rate cuts might provide some support. (Reuters)
Bank stocks haven’t been able to ride on narrative alone. This month, Citi’s shares have tracked the broader rate action, while investors look for signs that staff shake-ups lead to smoother deal flow and cleaner execution, not just more internal disruption.
The downside is clear. Slower growth or rising credit costs could flip higher-for-longer rates from a boost to margins into a trigger for loan losses. Meanwhile, a legal battle over a high-profile wealth hire threatens to distract Citi just as it pushes a culture overhaul.
Investors are eyeing April 14, the date Citi will release its first-quarter earnings, with its investor day set for May 7. (Citi)
