Thursday 06, September 2018 by Jessica Combes

Citigroup said to revamp investment banking with new leaders

 

Citigroup Inc. is planning to promote bankers Tyler Dickson and Manolo Falco to run a reconstructed version of its investment banking operations, people familiar with the plan said.

The lender will likely announce the plan on Thursday to combine its corporate and investment bank with its capital markets origination business, the people said, declining to be identified as the details are private. Ray McGuire, global head of corporate and investment banking, will take on a new role as a vice-chairman at Citigroup, the people said.

Citigroup has been re-jigging its power structure over the past week. Chief Executive Officer Michael Corbat promoted a former deputy to oversee the bank’s relations with Wall Street. Mark Mason, who worked directly under Corbat to free the firm of troubled businesses and assets in the aftermath of the financial crisis, will succeed Chief Financial Officer John Gerspach when he retires in March, the bank said Tuesday.

McGuire’s duties included overseeing the advisory unit, which advises on mergers and acquisitions, while Dickson runs the division that arranges stock and bond sales for clients. Revenue from the combined businesses declined 9 percent to about $2.6 billion for the first half of the year. Falco is currently head of the corporate and investment bank in Europe, the Middle East and Africa.

Business Insider reported the moves at Citigroup earlier.

Two other executives, North America head Bill Mills and Jim Cowles, who runs the bank’s EMEA business, are also departing, with plans to leave at year-end.

Other US banks have been revamping leadership as they plan for succession. Goldman Sachs Group Inc. said in July that David Solomon will become CEO in October, while JPMorgan Chase & Co. this year promoted Gordon Smith and Daniel Pinto to co-presidents under chief Jamie Dimon.

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