Citigroup revealed a dramatic shake up of its banking business on Friday, attempting to dispel criticisms that have taken hold in the wake of the bank’s 60 per cent fall in Q3 earnings, disclosed last week. Citi is to merge its investment-banking operations and its alternative-investments businesses. The combined unit will be run by Vikram Pandit, a former Morgan Stanley executive who joined Citigroup earlier this year when the bank bought his Old Lane Partners hedge fund. There are also widespread changes in executive positions. The bank is in the midst of a cost-cutting plan that calls for the reduction of 17,000 jobs, representing 5% of its work force.

This entry was posted by Sam Jones on Friday, October 12th, 2007 at 5:09 and is filed under Capital markets, People. Tagged with citi. Edit this entry.