![]() And people, including some big revenue producers, will be in similar situations all over Citi’s businesses.Įlsewhere, here’s a much more interesting use case for artificial intelligence than automatically writing limericks about VLOOKUP. He might be happy to spend more time with clients – that’s the purpose of the delayering according to Citi management – but he might not. Manolo Falco, for example, was previously co-head of Banking, Capital Markets & Advisory with Tyler Dickson, but now he’s moving into a vice chair role. Jane Fraser said to investors that “It’s going to make some of our people very uncomfortable I am absolutely fine with that”, but analysts like Mike Mayo noted that “The risk for this type of move is always undesired departures and internal strife, especially with Citi’s history”. ![]() The big risk, as with all such things, is that top employees get to make decisions too. He said that since various divisions like the Institutional Clients Group or the regional CEO teams are being eliminated, “that work goes away, those responsibilities go away, those people will have to go away”. Mark Mason’s comments on the job losses seem to suggest that they will be mainly a result of delayering and taking out middle management roles rather than in the front office. Jane Fraser’s memo to staff says that the reorganisation will involve “saying goodbye to some very talented and hard-working colleagues”, which might be a hint.Ĭiti confirmed that there would be redundancies across the bank as a result of the restructure, although they haven’t given numbers yet. Going forward, Citi is going to have two geographical regions – US and International. So that’s two seats at the top table occupied, broadly speaking, by markets people, and maybe half a seat for advisory bankers – Peter Babej used to be global head of FIG, but he's been regional CEO of Asia-Pacific for four years and he’ll be retiring next year, so his ability to win compensation committee fights for the Citi bankers will be limited.Īnd it appears that the other regional CEO jobs at Citi might not have much of a future. Shahmir Khaliq will be “Head of Services”, which includes treasury solutions and securities services. Tyler Dickson, however, reports to Peter Babej, the “Head of Banking” (which in this context means “Banking other than US consumer banking”). And there’s also something of a power imbalance between the two great tribes of investment banking, Sales & Trading and Capital Markets & Advisory.īasically, Andy Morton is a “business head”, directly reporting to the CEO. The “Institutional Clients Group” will no longer exist, and Citi will have a separate Head of Markets (former finance professor Andy Morton) and Head of Investment Banking (Tyler Dickson).Ĭiti will have five new business divisions, and all the major operating businesses will be run by men Titi Cole is in charge of “Legacy Franchises”, but other than that the entire leadership team is male apart from Fraser herself, her chief of staff and the head of HR. ![]() As had been rumoured, there is no replacing Paco Ybarra (who will serve out the time between now and his retirement next year as a senior advisor focusing on generative AI). At the Barclays global financial services conference yesterday, Jane Fraser and Mark Mason presented the new management structure.
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