Citigroup reorganized into four regions and hired a UK executive as head of its North American consumer business.
It's the broadest step yet in Chief Executive Vikram Pandit's continuing effort to reshape an institution that critics and shareholders have branded unwieldy and in need of overhaul or breakup.
While the latest announcement doesn't mention headcounts, there are indications the bank isn't done cutting staff. "In order to drive efficiency and reduce costs, Citi will further centralize global functions, including finance, information technology (IT), legal, human resources, and branding," the bank said. Citi reportedly cut some 6,000 jobs from its corporate and investment bank in the first quarter.
Industry analyst Mike Mayo of Deutsche Bank expects Citi to shrink its balance sheet by 15 - 20 percent via "downsizing, discontinued operations, asset sales, and/or sales of smaller businesses," according to MarketWatch. Mayo also reiterated his estimate that Citi will have $18 billion of write-downs when it reports first-quarter results later this month.
Ajay Banga will lead Citi's Asia Pacific region, including Japan. He currently oversees consumer businesses outside the U.S. William Mills will lead the Western Europe, Middle East and Africa region. He currently heads investment banking for Europe and the Middle East. Shirish Apte will lead the central and eastern European region, while Manuel Medina Mora continues to lead Mexico and Latin America.
Citi says the new structure aims to bring decision-making closer to clients by giving each regional chief the authority to make decisions on the ground. The four regional leaders report directly to Pandit.
Citi also reorganized the consumer banking business. Teresa A. "Terri" Dial was named global head of consumer strategy and chief executive of consumer banking in North America, based in New York. She joins Citi from Lloyds TSB, where she was group executive director, UK retail banking and a board member of the parent Lloyds TSB Group. At the same time, Citi's U.S. and international credit card business was separated from consumer banking and placed in a single global unit led by Steven Freiberg, who previously ran the North American credit card operation.
Separately, Citi elevated European equity finance head Nick Roe to head of global equity finance and prime brokerage, based in London. He succeeds the former global co-heads, Ali Hackett and Tom Tesauro, both of whom left the bank, according to The Wall Street Journal. Roe joined Citi from Deutsche Bank in 2005.
A number of news organs report Citi hired Jerome Anglade from Morgan Stanley to run a new distressed debt fund within the alternative investments division. Anglade, who was Morgan Stanley's head of European credit structuring, will start May 15, based in London. Jenny Peng, most recently a quantitative risk associate at Lehman Brothers, will join Citi as an associate on the new fund.