London benefits in Citigroup restructure

by Gill Montia

Story link: London benefits in Citigroup restructure

Citigroup, the global financial services group, has been reviewing its investment banking business in the light of the credit squeeze and US sub-prime mortgage crisis.

The bank is merging its debt and equity underwriting businesses and will also combine its stock and bond sales divisions, in a move that will give London a stronger presence in its world-wide operations.

Following the restructure, three of the group’s five global heads will be based in London: James Cowles head of equities; Paco Ybarra head of fixed income, currencies and commodities, and Antonio Cacorino co-head of sales.

James O’Donnell, who is currently head of global distribution for equities, has been appointed as the other co-head of sales and will remain in the US.

The global underwriting business will be led by the group’s head of equity capital markets, Tyler Dickson. He will also operate from the US.

Last week, Charles Prince stepped down as chief executive of Citigroup, when the bank reported that its losses from mortgage-related debt were far in excess of forecasts.

Citigroup employs around 12,000 people in London and 22,000 in New York. The London-based staff mostly work in investment banking operations.