Citigroup has shut down its London-based transition management team with the loss of several jobs as the US bank downsizes its capital markets business as part of a wide scale restructuring of its investment banking division.

The decision to close the operation, which was part of Citigroup's capital markets business, was taken late last month and will involve the loss of up to nine jobs after talks to transfer the team to the bank's custody business failed, according to a source familiar with the bank's plans.