Major reorganization at Citigroup

Oct. 12, 2007 at 9:53 AM
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NEW YORK, Oct. 12 (UPI) -- Citigroup, the giant New York bank, announced a major reorganization that includes combining two key units under one leader.

The bank’s embattled chairman and chief executive, Charles O. Prince III, announced Thursday night that Citigroup would combine its investment banking and alternative investment units and make some major management shifts, The New York Times reported.

Vikram Pandit, who runs Citigroup’s alternative investment division, will lead the new group, to be called the institutional client group and oversee two other executives.

One of them, James Forese, who had been head of global equities, was promoted to co-chief executive of the investment bank and will be responsible for its capital markets activities, the Times said. The second executive, Michael S. Klein, will remain as a co-chief executive of the investment bank.

A third executive, Thomas G. Maheras, who had shared power with Klein, is leaving after a review of the fixed-income trading operations led to the departure of a top lieutenant, Randolph Barker, the newspaper article said. Barker’s partner, Geoffrey Coley, was reassigned, given unspecified responsibilities.

Much of a $5.9 billion third-quarter write-down that Citigroup announced last week came in fixed-income trading.

Prince declined to comment on the review in a telephone interview with the Times but was upbeat in answering questions about his ability to guide Citigroup.

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