Sallie Krawcheck to Leave Citigroup
Head of wealth management division had once been considered a potential candidate to run the US bank
Sallie Krawcheck, one of the most powerful women on Wall Street, has become the latest high profile banker to stand down amid the turmoil rattling the financial markets.
Krawcheck, 43, who earned $11m at Citigroup last year, had once been considered a potential candidate to run the bank.
She is leaving as part of a restructuring designed to get the firm back into profitability. Citigroup has lost $17.4bn in the past three quarters, largely through exposure to soured mortgages.
Krawcheck currently runs Citigroup's wealth management division, which is being brought under its institutional clients business. The bank said she is leaving "to pursue other opportunities".
Krawcheck joins a growing roll call of senior executives on Wall Street to have left their jobs in the crisis that reached crescendo last week.
Her former boss, Charles Prince at Citigroup, Stan O'Neal, the former chief executive of Merrill Lynch and James Cayne at Bear Stearns all stood down in quick succession around the turn of the year.
The ranks of senior women on Wall Street have been especially thinned. Erin Callan, the former chief financial officer at the now bankrupt Lehman Brothers was replaced in June and Morgan Stanley co-president Zoe Cruz left in December after 25 years with the firm. Credit Suisse hired Callan the following month to run its hedge funds business.
Michael Corbat, becomes head of the wealth management business and Krawcheck will remain as chairman of the division for three months to help in the hand over. Edward Kelly is taking over the global banking division, which includes the investment bank and the commercial bank.
Vikram Pandit, who replaced Prince as chief executive, has been restructuring Citigroup since he took the job in December. Among key appointments, he brought in his former colleague John Havens to run the firm's investment bank in March. Pandit said Krawcheck had been "an invaluable asset".
Krawcheck was hired in 2002 to restore the reputation of its research division, Smith Barney, in the wake of a conflict of interest scandal. Two years later she was promoted to chief financial officer, but she went back to running wealth management, which includes Smith Barney as well as the private bank that caters to wealthy clients, in 2007. The move was widely seen as a backwards step for Krawcheck.
She had previously been head of Sanford C Bernstein, an independent research firm.
Krawcheck, 43, who earned $11m at Citigroup last year, had once been considered a potential candidate to run the bank.
She is leaving as part of a restructuring designed to get the firm back into profitability. Citigroup has lost $17.4bn in the past three quarters, largely through exposure to soured mortgages.
Krawcheck currently runs Citigroup's wealth management division, which is being brought under its institutional clients business. The bank said she is leaving "to pursue other opportunities".
Krawcheck joins a growing roll call of senior executives on Wall Street to have left their jobs in the crisis that reached crescendo last week.
Her former boss, Charles Prince at Citigroup, Stan O'Neal, the former chief executive of Merrill Lynch and James Cayne at Bear Stearns all stood down in quick succession around the turn of the year.
The ranks of senior women on Wall Street have been especially thinned. Erin Callan, the former chief financial officer at the now bankrupt Lehman Brothers was replaced in June and Morgan Stanley co-president Zoe Cruz left in December after 25 years with the firm. Credit Suisse hired Callan the following month to run its hedge funds business.
Michael Corbat, becomes head of the wealth management business and Krawcheck will remain as chairman of the division for three months to help in the hand over. Edward Kelly is taking over the global banking division, which includes the investment bank and the commercial bank.
Vikram Pandit, who replaced Prince as chief executive, has been restructuring Citigroup since he took the job in December. Among key appointments, he brought in his former colleague John Havens to run the firm's investment bank in March. Pandit said Krawcheck had been "an invaluable asset".
Krawcheck was hired in 2002 to restore the reputation of its research division, Smith Barney, in the wake of a conflict of interest scandal. Two years later she was promoted to chief financial officer, but she went back to running wealth management, which includes Smith Barney as well as the private bank that caters to wealthy clients, in 2007. The move was widely seen as a backwards step for Krawcheck.
She had previously been head of Sanford C Bernstein, an independent research firm.
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