Citigroup Inc is combining two groups of traders focused on global credit markets, which have been in turmoil this month.
In an internal memo dated August 24, the largest U.S. bank said it is combining its emerging markets credit trading and global credit trading businesses into a unit led by Carey Lathrop, who had headed up the emerging markets business.
Jim Higgins and Dave Pichler, who were co-heads of global credit trading, will leave the company, according to the memo. Lathrop joined Citigroup in 1988.
Combining these businesses will assure our continued dominance in both the international trading markets, and the fast growing local markets, according to the memo from Chad Leat and Mark Watson, co-heads of global credit markets.
It wasn't clear whether the changes relate to market volatility resulting from investor resistance to buying securities they consider risky, including subprime mortgages and debt used to finance leveraged buyouts.
The shuffle comes six months after Citigroup combined its global loans and leveraged finance business with its emerging markets debt capital markets business.
Citigroup operates in more than 100 countries, and generates nearly half its profit and revenue outside the United States.
(Reporting by Jonathan Stempel)