Citigroup Inc announced a major reorganization and management shake-up last night following last week’s forecasted 60percent declines in third-quarter earnings.
Citi Chief Executive Charles Prince announced the plans as questions linger about his ability to run the giant bank.
He revealed that Citi would combine it’s investment banking and alternative investment units, bringing the groups together under one leader.
Vikram S. Pandit, a former Morgan Stanley executive who runs Citigroup’s alternative investment division, will head the new group, to be called the institutional client group.
New leadership
Michael Klein will continue to be a co-head of capital markets and banking whilst Jamie Forese, head of global equities for Citi, was promoted to co-head capital markets and banking with Klein.
The financial services group also said that trading head Thomas Maheras was leaving along with Randy Barker, one of Citi's three heads of fixed income.
Shares of Citi, the largest bank in the U.S., have still fallen more than 13 percent so far this year, it said last week that it expects $3.3 billion of losses and write downs from its securities and banking areas.
Citigroup is due to report third-quarter results on October 15.
October 12 2007
Related Links
Citigroup
Bookmark with:
- Digg
- Reddit
- Del.icio.us
- Facebook
- Newsvine
Sign Up to Exec UK now for FREE!