Citigroup Inc fired most employees at its real estate investment banking team in Asia after slumping property prices stifled share sales and acquisitions in the industry, three people familiar with the matter said.
The New York-based bank dismissed at least five people two weeks ago, the people said, declining to be identified because they aren't authorised to discuss the matter publicly. Departures included Edmund Ho, a managing director who headed the team, and Director Edward Yeh, they said.
The global credit crisis has caused more than 191,000 job losses at financial firms worldwide, while driving property prices lower from Beijing to New York. Hong Kong's and China's benchmark property indexes have both fallen 59 per cent this year, while Singapore's FTSE Straits Times Real Estate Index tumbled 62 per cent.
Singapore, Hong Kong and China accounted for most of Citigroup's real estate investment banking transactions in Asia excluding Japan in the past two years, according to data compiled by Bloomberg.
Citigroup, which in November embarked on a plan to shed 52,000 jobs worldwide, will serve property clients through its country and corporate bankers after closing down Ho's team, the people said.
The bank, with operations in more than 100 countries, last month received US government insurance on $306 billion of toxic assets to help it weather the credit crunch.
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Ho, 41, joined Citigroup as a director in 2004 from JPMorgan Chase & Co, focusing on Hong Kong client coverage. He was named head of Asia real estate investment banking in 2006, and promoted to managing director early this year.
Jobs cuts at the team began in September with the departure of co-head of Asia real estate banking Sonny Badiga, the people said. Badiga couldn't be reached for comment. James Griffiths, a Hong Kong-based spokesman at Citigroup declined to comment on the departures.
Share sales by Asian property companies tumbled 82 per cent to $4.8 billion this year from 2007, according to data compiled by Bloomberg. In 2006, the year Ho was put in charge of the team, real estate firms in the region sold a combined $14 billion of stock.