Citi

Even as they delever, shed assets, raise capital and hoard liquidity against further hits, banks know they must also fundamentally change the rotten underlying business practices that led them to disaster. If they can’t, even those that manage to survive this disaster will fall victim to the next. That’s if the regulators don’t shut them down first. Peter Lee reports on an industry trying to relearn the basics.

New heads of fixed income, loans and equity appointed in Europe – Berman takes banking role.

Charlie Berman, a long-standing veteran of the debt origination business at Citi, is moving internally to a new job in investment banking. Berman is a Salomon stalwart, who during a long career has run European debt capital markets, either jointly or solely, and the frequent borrower business.

Citi The bank’s emerging markets business has excelled despite the tough conditions and Citi’s own troubles.

The region’s importance could mean more banking officials relocating there.

Charles Prince, he of Citi fame, will be forced to move back into his Park Avenue apartment after putting his Greenwich, Connecticut, mansion up for sale.

Redecard, a merchant servicing business in Brazil that Citi holds a majority stake in, plans to undertake a follow-on secondary offering. The announcement came within hours of Citi announcing write-downs of $18.1 billion in the fourth quarter of 2007.

Vikram Pandit faces one of the toughest challenges ever seen in the banking industry.

Citi is proof of the adage: “You can’t be all things to all men.” A mole confided: “I’m all for breaking it up.” In my first column, published in April 2006, I queried the strategy and investment validity of Citigroup. Eighteen months later, I’m still asking the same questions.

The US bank recovered from a similar crisis in the early 1990s. But this time around it lacks strong leadership.

Those looking to harm Ms Whitney may want to think twice.

The US bank recovered from a similar crisis in the early 1990s. But this time around it lacks strong leadership.

Chuck Prince's former CEO-ship at Citi was marked by high hopes and heavy losses. The Citi he inherited had been built to tower over the the rest of the global financial services industry, but it did so only briefly before seriously testing the limits of manageability.

Citi announced on October 2 that it would acquire the remaining shares in broker Nikko Cordial that it does not already own to make the company a wholly owned subsidiary. The move marks the first usage by a foreign firm of the new triangular merger legislation, which allows firms to use their shares rather than cash to make acquisitions and which has been available since May after a ban on the practice was rescinded.

After the crash, here comes CASH

Citi has joined its emerging markets credit and global credit trading businesses. Carey Lathrop is the new head of the group, replacing Jim Higgins and Dave Pichler, who are leaving the bank. Lathrop has been at Citi since 1988 and was head of the investment-grade syndicate until 2003 when he took over emerging markets credit trading.

In a landmark decision, the Federal Court of Australia has held that the law will enable an investment bank to contract out of, or modify, any fiduciary obligations owed to a client.

Quinenco, the largest shareholder in Banco de Chile, and Citi have agreed a partnership in which Citi will have the rights to acquire up to 50% of the holding company that controls Banco de Chile.

Head of prime brokerage Hannah Goodwin talks about expansion of the bank’s services to Singapore.

Citigroup CEO Charles Prince said in March that he hoped that the vacant position of head of the group’s alternatives business (CAI) would be filled within weeks. It’s about time.

Citi has carved out a non-mortgage-related ABS business line called global securitized products.

Citi has unveiled the management structure of its recently created fixed income, currencies and commodities (FICC) business unit.

The final outcome of a much-rumoured rebranding exercise was not much of a surprise.

The shift in the balance of power in Citi’s debt group duplicates a trend seen in some other US investment banks.

I was flattered when a chief executive emailed: “Abigail, are you the Euromoney honey?” but in business school they teach that there is no second mover advantage. The real money honey is Maria Bartiromo, the Sophia Loren look-alike anchor of the Closing bell programme on CNBC.

Summary table of top banks, with quick links to more related content on euromoney.com

Unsuspecting staff at the Citigroup Centre in London passing by the fixed-income trading floor were shocked to see their head of high-yield sales and trading, Mickey Brennan, and their head of emerging markets sales, Marc Pagano, getting their heads shaved while fellow staff members cheered on.

It could be that the bank is simply too large, and only disposals can change the culture. But the recent changes are, to date at least, a missed opportunity.

We can work it out.

Investor enthusiasm towards China's stock market is likely to continue into next year, with banks and telecommunication companies favored amid tax and industry reform, Citigroup said.