The restructuring at Citigroup continues as Michael Corbat has been named permanent chief executive of Citi Holdings, according to a Reuters report. Corbat officially takes over the chief executive position after being named interim chief executive on January 16, 2009. Michael Corbat is a 25-year veteran of Citigroup, and served as chief executive of global wealth management before becoming chief executive of Citi Holdings.
Citi Holdings is the unit of Citiroup that houses the Smith Barney brokerage, as well as a number of businesses and “risker assets that may be shed.” Currently Citi Holdings is in charge of $850 billion worth of assets, of which $300.8 are classified as “troubled”. $45 billion in TARP funding went to Citigroup after the government agreed in November to share in losses from the trouble Citigroup assets.
Certainly, Michael Corbat will be focused on risk management moving forward as Citigroup looks to rebound from its downturn. One of his first orders of business will be to oversee the merging of Smith Barney and Morgan Stanley’s brokerage into a joint venture.
In other news related to people on the move at Citigroup:
- Gary Crittenden, formely Citigroup’s CFO, was named chairman of Citi Holdings last month.
- Edward “Ned” Kelly succeeded Gary Crittenden as Citigroup CFO.
- Eric Aboaf, formerly the CFO of Citigroup’s Institutional clients group, was named treasurer.