Citigroup leaves UK subprime market

Citigroup is to withdraw completely from the UK subprime lending market.

The American bank has announced its mortgage unit Future Mortgages and the unsecured loans operation CitiFinancial will close.

Both businesses were originally acquired in 2000/2001.

However, the bank has confirmed its 90,000 mortgage customers would continue to see their mortgage loans maintained by other parts of the Citigroup business.

Changes could result in the loss of some 700 jobs, the organisation said.

Earlier this month research from credit agency Experian found some 40,000 jobs could go in the London banking and insurance sectors over the next three years, as the credit crunch continues to exact a high price.

The job losses will be centred on the closure of the Doxford call centre operation near Sunderland, where 400 people are employed, and a further 49 CitiFinancial branches, which employ 300 people.

Citigroup has been one of the worst affected banks during the credit crunch.

A series of multi-billion dollar writedowns cost former chief executive Charles Prince his position.

Successor Vikram Pandit has recently announced plans to cut at least 9,000 jobs from the 370,000-strong global workforce.

Chris O'Toole