Tomahawk, WI 02/04/2014 (BasicsMedia) – At a time when Citigroup Inc (NYSE:C) intends to increase or expand its presence in the European energy markets, it is worth noting that some of its major competitors are contemplating how they can pull out. This is quite interesting since it shows that Citigroup is either too ignorant or daring enough to taste success in a market that has proved to be anything than good for its peers who tried their luck much earlier. Bank of America Corp (NYSE:BAC) and Deutsche Bank AG (USA) (NYSE:DB) have both withdrawn or reduced their stakes in European energy markets in the recent years.

The main reason that Bank of America and Deutsche Bank issued for their decisions to leave the European energy market hinged on the fact that they were forced to deal with increasingly tighter regulation. Secondly, these two financial behemoths stated that they had to deal with too many staff cuts that affected their utilities in Europe energy markets. Citigroup Inc (NYSE:C) is showing just how serious it takes the European energy markets, because it now has employed ten people to take care of its power and gas businesses within this region, which it will keep increasing with time.

Morgan Stanley (NYSE:MS) is yet another major financial company that has decided to shut down its power and gas trading units that specialize on the European energy markets. Yet, despite all these changes and latest developments, Citigroup Inc (NYSE:C) believes that this is the best time to expand its operations. It has plans to increase its staff that it employs in the commodities section by around 15 percent from the current number of 80 individuals. Regulators in Europe’s energy markets are strict with the new measures they have introduced thus leading to withdrawal by certain firms.

Citigroup Inc (NYSE:C) believes that the withdrawal by other players from Europe’s energy market has created great demand for banks that can act as hedging counterparties. Without liquidity, this market would not function as it is supposed to, and this is the need that Citigroup hopes to alleviate by expanding its operations and interests in Europe’s energy market. When utilities and banks all scale back at the same time, there is a high possibility of seeing the energy market in Europe drying up, and this would have serious ramifications in many economies in this region.

Citigroup Inc (NYSE:C) has been trading European energy market since 2007. Its commodities team currently boasts of around 250 employees. It opted to cut down on its US staff in 2013 after reducing its energy business in the country. Regulators have come up with new laws they expect players in the European energy market to abide by, and this is what has led to the current situation. It remains to be seen whether Citigroup will manage to succeed in a market that has seen a high rate of withdrawals from some of the biggest names in the banking industry.

Citigroup Inc (NYSE:C) has great opportunities for success in the European energy market. The bank has identified a need and is working hard to meet it, in order to protect the energy market from total collapse.

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