Citigroup reorganizes investment banking

NEW YORK, Nov. 13 (UPI) -- Citigroup Inc. is reorganizing its U.S. investment-banking unit, removing the co-heads of its credit markets group, an internal memo said Tuesday.

The changes will organize the division more like its investment banking rivals, said the memo from James Forese, Citi's new head of capital markets.

"We have decided to adopt a model that will more closely align our origination and sales functions across traditional product categories," the memo said.

"By doing so, we will be better positioned to provide clients with the highest quality advice, the most innovative solutions and the best execution," it said.

Citigroup will combine its equity capital markets and fixed-income capital markets activities to form Capital Markets Origination, led by former equity capital markets head Tyler Dickson.

Fixed-income capital markets co-head Chad Leat will assume "a senior role focusing on key clients and transactions globally," the memo said. He will also focus on Citigroup's pipeline of loans made to fund leveraged buyouts.

Fellow co-head Mark Watson will work "on transitional issues before taking a new position within the organization," the memo said.

The reorganization marks the first major step Forese has made since he took over last month for Thomas Maheras, who left after the bank announced big losses.