After six years at Citigroup Inc., Sallie Krawcheck, the head of global wealth management, is leaving -- reportedly because of differences of opinion between her and CEO Vikram Pandit. Despite the rumors of friction between them, Pandit said of her departure: "Sallie Krawcheck has been an invaluable asset to the firm and a true thought leader within the industry."
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Krawcheck reportedly disagreed with Pandit
over the direction of Citigroup, its management structure and the
settlement of claims over investor losses, The New York Times reported,
citing Citi officials.
Krawcheck is known for her business ethics and gained fame as she
sprinted up the financial services ranks at a number of firms. The
Times notes Krawcheck was brought in by former CEO Sandy Weill to
restore credibility after Citigroup was tarred by conflicts over its
investment research; she was head of Sanford C. Bernstein & Co., and was called "The Last Honest Analyst" by Fortune magazine. Citigroup
said Krawcheck would remain as chairman of GWM until the end of the
year to ensure a smooth transition of roles.
Mike Corbat becomes chief of GWM,
and Edward Kelly was named head of global banking for the institutional
clients group.Corbat is a 25-year veteran of Citi's institutional
business, most recently he was global head of the corporate and
commercial bank. Now he'll deal with ultra-high-net-worth,
high-net-worth and emerging affluent clients. Kelly will also continue
to oversee Citi Alternative Investments.
Citigroup recently made Movers & shakers headlines as Mark Shafir took the top dealmaker role at the bank after leaving Lehman Brothers Inc. to become head of global mergers and acquisitions. - Baz Hiralal
See the press release from Citigroup
See story from The New York Times
For more Movers & shakers, see The Deal newsweekly's dealmaker section
