Ritik Gupta
Citigroup’s incoming chief executive, Jane Fraser, has begun to create her mark on the firm — refurbishing the unit that oversees money for wealthy customers.
The US bank has established a new global wealth unit, which will be supervised by Jim O’Donnell, previously the bank’s global head of investor sales and relationship management, according to an internal memo seen by Financial News. The new division will integrate its private bank and its consumer wealth organization, regulating money for less wealthy customers.
Citi’s private bank formerly fell into its institutional clients’ group, an integral unit operated by Paco Ybarra, encompassing its investment bank, sales, trading operation, and corporate banking services. O’Donnell will report to both Ybarra and Anand Selva, who directs Citi’s US consumer unit.
The memo was delivered by Michael Corbat, Citi’s chief executive, and Fraser, who is set to hold the reins at the top next month, the first woman to head up a prominent Wall Street bank.
“We are seeing once-in-a-generation wealth creation in many parts of the world, particularly Asia. With our unique capabilities and assets, Citi has both the opportunity and the ambition to lead our industry in wealth management,” the memo said.
Though Fraser turned on as an investment banker, she expended years in senior roles within Citi’s consumer and commercial bank, overseeing its consumer bank from 2019. She has moreover headed up its private banking unit, and a transition to change positions of the two companies closer together puts up with the hallmarks of her first critical strategic move.
“Making wealth management a key differentiator and source of enhanced returns for Citi will be an important element of our strategy going forward,” the memo said. “Putting the full force of our firm behind an offering in this way reflects the approach we’re taking to transforming our bank.”
Citigroup has gone on installing new leaders in significant roles across its corporation. On 13 January, it named Shahmir Khaliq as its new head of treasury and trade solutions, a fundamental unit for the US bank, replacing Naveed Sultan, who is now chairman of its ICG.
Meanwhile, in its markets business, Lucy Baldwin was hired from Credit Suisse into a newly-created position supervising equity research and equity advisory department.
