NEW YORK (AP) — Citigroup Inc. is promoting John Havens to president and chief operating officer, the latest step in the bank’s efforts to overhaul its management structure. Citi, which exited government ownership last month, has also sold off businesses.
Its stock edged up 4 cents to $4.84 in morning trading on Wednesday.
Havens currently serves as CEO of the bank’s institutional clients group. As president and COO he will be responsible for Citigroup’s daily operations. Havens will report to CEO Vikram Pandit.
Aside from Havens’ appointment, Citigroup announced several other management changes. James A. Forese, co-head of global markets, will now become CEO of securities and banking. Citi Vice Chairman Ned Kelly will take on the new role as institutional clients group chairman. Both will report to Havens.
Francesco Vanni d’Archirafi will remain CEO of global transaction services.
Others that will report to Havens include the regional CEOs of Europe, the Middle East and Africa, the regional CEOs of Asia Pacific and the heads of some global functions.
“This new management structure will serve the company well as we aim to enter into a new phase of responsible and sustained growth,” Pandit said in a statement.
Free from the government’s hand, Pandit is now working to please the bank’s other shareholders. Citi has focused much of its energy in the past two years on cutting off parts of its businesses that don’t fit with its main banking operation. The company has sold its European credit card business, brokerage operations in Japan, a 50 percent stake in the brokerage Smith Barney and various insurance businesses for a total of $44 billion.
Citi split itself into two parts in 2009 — Citicorp and Citi Holdings. The latter division holds riskier assets including the mortgage-backed securities that undermined the bank and other financial institutions during the market meltdown.
The management shake-up comes a day after Citigroup reported fourth-quarter net income of $1.3 billion. The profitable quarter came only after the New York company reached into reserves that it no longer needed for loan losses. Revenues from trading stocks and bonds fell sharply.
Citigroup was one of the largest recipients of bailout funds during the financial crisis of 2008. The government sold the last of its stake in the bank in December for a profit of $12 billion.
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