Citigroup – we know this banking giant is too big to fail. But is it also too big to manage?
After being among the biggest casualties of the subprime mortgage-related meltdown in the West, suffering huge write-downs and shedding jobs and non-core operations, Citigroup finally has its reorganization strategy. Citigroup’s Asia business will be split geographically into Japan, North Asia, South Asia and Southeast Asia Pacific, and will be divided across seven product groupings. The regional heads will be responsible for all
Citigroup’s business within their specific geographic areas. Previously, New York-based Citigroup’s Asia business was led by heads of its institutional clients group, global wealth management and consumer units.
Reuters quotes Ajay Banga, Citigroup Asia-Pacific CEO as saying, “I want the client not to have to navigate Citigroup. I want us to navigate Citigroup and bring it together at the front end for them, and that’s why you need to bring all the organisations and geographies together under one cluster head.” Before Banga’s appointment in March, Citigroup did not have a region-wide chief executive for its Asia-Pacific business.
Citigroup’s New Asia Structure
Under the new Asia structure, the regional groupings will be supported by seven business groups: consumer banking and global cards; corporate and commercial banking; global transaction services; investment banking; markets; wealth management; and alternative investments.
Doug Peterson will continue to lead Citigroup’s Japan business, the company said. Stephen Bird, who ran consumer banking in Asia, will run North Asia and also continue to head consumer banking and global cards for all of Asia Pacific.
Sanjay Nayar will continue to lead South Asia and Piyush Gupta will lead Southeast Asia Pacific, the bank said. Banga will personally lead alternative investments of Citigroup.
At the end of 2007, Citi had 3,80,000 ( 80 percent more than the number at its closest competitor in size, Bank of America) dispersed over 106 countries which are busily selling a wide range of products from credit cards to mortgages to investment banking.