The corporate and investment banking division of Citigroup (C) will soon cease to exist as an independent unit. According to sources, the bank is planning to merge the division with its capital markets origination business as part of the ongoing restructuring. The combined entity will be named ‘Banking, capital markets and advisory’.
The initiative is expected to generate additional revenues for the bank by boosting wallet share, while also helping it expand market share in the lucrative investment banking sector. The division, which continues to be the firm’s key revenue driver, has been witnessing softness in the recent quarters. The new model adopted by Citi for its core business is already being followed by rivals JP Morgan (JPM) and Goldman Sachs (GS).
The restructuring will also include significant changes to the leadership team. Corporate and investment banking head Ray McGuire will take the reins of the new unit, which will have Manolo Falco and Tyler Dickson as global co-heads. McGuire will also assume the role of the group’s vice-chairman.
Ray McGuire will lead the new unit, which will have Manolo Falco and Tyler Dickson as global co-heads
Citigroup’s chief financial officer John Gerspach will be retiring early next year, to be succeeded by Mark Mason who currently serves as chief financial officer of institutional clients. Mason had played a key role in reorganizing the company through strategic initiatives after the financial crisis, working closely with the CEO.
The other executive changes announced by the bank recently include the departure of Jim Cowles as CEO of EMEA operations and Bill Mills as CEO of North American operations. Earlier, cards and consumer services chief Jud Linville left the company.
The New York-based bank has been exploring ways to regain the lost strength, with focus on scrapping its many secondary businesses and scaling back assets worth several million dollars. Recently, Citi rejigged its sprawling consumer banking business in the US by combining the credit-card business and wealth and retail units.
Of late, bank stocks have been under pressure from muted yield and softness in lending. Citigroup shares dropped about 4% since the beginning of the year, after reaching a post-recession peak in January. The stock traded lower in the early trading hours Thursday.
Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as
Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and
Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock