The ax is swinging again at Citigroup.
The world's biggest financial services firm on Thursday dismissed its entire stock market technical analysis team, including longtime analyst Louise Yamada, who led the group. Yamada had been with the bank for nearly a quarter of a century.
The firing of Yamada and her team of assistants is part of an effort by Citigroup to control expenses. Last week, Citigroup fired six other analysts, and the company is planning to eliminate up to 1,000 jobs from its global corporate and investment banking division.
Mary Ellen Hilary, a Citigroup spokesman, says the technical analyst group won't be replaced. She says the firm is in the process cutting expenses and investing more money in areas involving fundamental analysis.Under technical analysis, charts and computer programs are used to project price trends in stocks, bonds and the broader market. The practice makes minimal use of economic fundamentals and is not without its critics on Wall Street. "While a difficult decision, we believe focusing our research investments toward fundamental company coverage best positions Citigroup to succeed in an increasingly competitive environment,'' said Bill Kennedy, director of global equity research, in a note to staff. During her tenure at Citigroup, Yamada was quoted frequently by the financial press and often appeared on CNBC. In 1998, she published a book on market analysis called Market Magic: Riding the Greatest Bull Market of the Century.