Truist Financial Corp. has announced plans to cease sales and trading of mortgage-backed securities, as well as government-agency and Small Business Administration bonds, by January 2024. The North Carolina-based bank is making this move as part of its regular assessment of growth opportunities and adjustments to its business.
Approximately 80 employees in the bank's Atlanta and Memphis offices have been let go in connection with these changes. While Truist did not comment on the job cuts, they have stated in an emailed statement that they will work closely with their clients to support them during the transition.
The decision to exit certain aspects of Truist's fixed income sales, research, and trading business comes amid warnings from banks that trading revenue is likely to decline in the first three months compared to the previous year. The five largest Wall Street banks, including JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., and Morgan Stanley, expect total trading revenue to drop by 10% to $29.9 billion.
