Citigroup names CFO head of Citi Holdings

By AFP

July 15, 2010 Updated Mar 20, 2009 at 1:02 PM CDT

Citigroup, the government-rescued US banking giant, announced a management shakeup Friday, tapping its chief financial officer to head Citi Holdings, a new unit holding relatively risky assets.

Citigroup named CFO Gary Crittenden to the newly created post of chairman of Citi Holdings, whose "non-core" assets the bank intends to sell, and tapped Edward Kelly, the head of global banking, to replace Crittenden.

Crittenden's task at Citi Holdings will be "to optimize the value of the businesses in this unit," which represents a significant portion of the assets of Citigroup, the New York-based bank said in a statement.

Citi Holdings' assets include a 49 percent stake in Morgan Stanley Smith Barney, a wealth management joint venture launched in January with Morgan Stanley; Primerica insurance and Japanese units Nikko Cordial Securities and Nikko Asset Management.

Shares in Citigroup rose 1.15 percent to 2.63 dollars in midday New York trade.

Citigroup announced in mid-January that it was realigning the company into a two-part structure: Citicorp, an international commercial bank, and Citi Holdings, group the bank's "non-core businesses," including brokerage and retail asset management.

Before joining Citigroup in March 2007 as CFO, Crittenden was the chief financial officer at American Express from 2000 to 2007.

Kelly was a managing director at private investment firm The Carlyle Group before joining Citigroup in February 2008.

The management shuffle came as Citi, once the world's biggest financial firm, continued to struggle with the real estate meltdown and credit crisis despite 45 billion dollars in public aid.

The bank has had five consecutive quarterly losses and a 2008 deficit of 18.72 billion dollars.

In late February, the government became its largest shareholder in a deal that raised its stake in Citigroup to 36 percent from 8.0 percent by converting 25 billion dollars in preferred stock to ordinary shares.

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