Troubled financial services firm Citigroup, Inc. (C) Monday announced more reshuffling among its executives, appointing Mike Corbat as chief executive officer of the newly formed company Citi Holdings that include brokerage and asset management, local consumer finance and a special asset pool. Separately, the bank named Eric Aboaf treasurer of Citigroup. Last month, the bank had announced the appointments of new chairman of Citi Holdings and chief financial officer of the Citigroup.
Citigroup on January 16 realigned the company into two businesses, Citicorp and Citi Holdings, in order to optimize its global businesses for future profitable growth and opportunities, after reporting its fifth straight quarterly loss. While Citi Holdings focuses on the tight management of risks and losses and the maximization of the value of assets, Citi Holdings represents a significant portion of the assets of Citigroup. The company then said that it plans to implement the transition to the new structure to the maximum extent and as quickly as possible.
Corbat joined Citigroup in 1983 and has worked in Atlanta, New York and London. He has been serving as interim chief executive officer of Citi Holdings since its realignment. He will continue to work closely with Citi Holdings' new chairman Gary Crittenden to evaluate and set the strategic course for the business, the company noted.
Most recently, Corbat served as chief executive officer of Citi's Global Wealth Management unit. Prior to that, he was head of the Global Corporate Bank and Global Commercial Bank at Citi. He also led Global Emerging Markets Debt, responsible for the origination, trading and sales of emerging markets fixed income debt.
With more than 25 years at Citi in a variety of leadership roles, Mike brings a tremendous amount of experience, insight and energy to this post, said Citigroup chief executive officer Vikram Pandit.
Mike will work closely with us to accelerate our assessment of strategic opportunities for these businesses, as we also seek to optimize their performance through this challenging market environment, Pandit added.
New treasurer Aboaf will manage Citi's balance sheet and will be responsible for ensuring strong liquidity, asset and liability management and optimization of our capital structure. He will report to the bank's newly appointed chief financial officer Edward Kelly and work closely with all of Citi's businesses within both Citicorp and Citi Holdings to support their funding needs and optimize capital deployment. Aboaf will also work closely with the Risk organization and external regulators and rating agencies. In addition, he will communicate with and expand the bank's fixed income investor base.
Aboaf, who joined Citigroup in 2003, most recently served as chief financial officer of the Institutional Clients Group. He has made a significant contribution in Finance at Citi. He has also held the positions of chief financial officer of Global Consumer as well as Head of Financial Planning and Analysis. Prior to joining Citi, Aboaf was co-head of Bain's U.S. Financial Services practice.
Citigroup has announced several management changes recently. On March 20, Citigroup named then chief financial officer Gary Crittenden chairman of Citi Holdings. The company appointed Edward Kelly, Head of Global Banking, to succeed Crittenden to the position of chief financial officer.
Crittenden joined Citigroup in March 2007. Prior to that, he was Executive Vice President, Chief Financial Officer, and Head of Global Network Services at American Express Co. (AXP) during 2000 to 2007.
Kelly joined Citigroup in February 2008. Before that, he served as Managing Director of private equity firm The Carlyle Group.
In March itself, Citigroup has nominated four new independent director candidates - Jerry Grundhofer, Michael O'Neill, Anthony Santomero, and William Thompson, Jr. - to be voted on the company's annual shareholder meeting scheduled on April 21. Earlier this year, Citigroup appointed Richard Parsons as chairman of the board, effective February 23. Parsons succeeded Win Bischoff, who is planning to retire from the company later this year.
C is currently trading at $2.75, down $0.10, on a volume of 80.96 million shares.
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