Citigroup CEO Jane Fraser: Clients Focused on Launching M&A Activity

Pent-up demand for mergers and acquisitions (M&A) activity has been released by the election of Donald Trump, Citigroup CEO Jane Fraser said Tuesday.

Speaking with Bloomberg Television, Fraser said the bank’s clients had been waiting to begin M&A activity and are now focused on doing so, Bloomberg reported Tuesday.

There is demand for M&A activity across industries because companies see that they need to scale to compete, Fraser said, according to the report.

Addressing Citigroup’s restructuring and its sharpened focus on businesses generating the highest returns, Fraser said the strategy is working but there is more to be done, per the report.

The bank’s latest moves include working on private credit deals with Apollo Global Management, selling off parts of its wealth business and promoting its services business by advertising its global network to investors, according to the report.

During an Oct. 15 earnings call, Fraser said that Citigroup’s transformation proceeds apace, with a recent example being the closing of a longstanding consent order tied to its anti-money laundering systems, PYMNTS reported at the time.

“We have increased our investments in areas where we have not made sufficient progress, such as data quality management,” Fraser said during the call. “I and the management team remain steadfast and determined to get this transformation right and to get this done.”

It was reported Friday (Nov. 8) that shares of credit card issuers and lenders rose after the election of Trump, with investors expecting the incoming administration to deliver regulatory changes that are favorable to the industry.

Investors also anticipate that there will be more spending and fewer defaults as the economy improves, and that a new Trump administration will be more likely than the Joe Biden administration to alter or eliminate the Consumer Financial Protection Bureau (CFPB) rule that would reduce credit card late fees to $8.

Another report said Wednesday (Nov. 6) that Trump may ease restrictions on mergers and acquisitions that were set by the Biden administration.

Trump’s administration could also revise policies implemented by Federal Trade Commission (FTC) Chair Lina M. Khan, which sought to address perceived harm from corporate consolidation.