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发表于 2012-10-16 11:07 AM
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Citigroup Turns to Veteran Hand
from WSJ
Vikram Pandit's abrupt departure from Citigroup Inc. C +0.85% shocked market observers early Tuesday. The news of who would succeed him was far less surprising.
Michael Corbat, a 30-year veteran of Citigroup and its predecessors, had widely been considered within the bank to be a top candidate to succeed Mr. Pandit as chief executive after he spearheaded Citi's efforts to right itself in the wake of the financial crisis.
Citigroup
MIchael Corbat
As the head of Citi Holdings, a portfolio of assets deemed noncore by the bank and lumped together in 2009, Mr. Corbat was given the task of shedding businesses that had become a distraction for the bank.
As of last fall, Mr. Corbat had overseen business sales or wind-downs of $500 billion during his time at the unit's helm. The properties his group shed included a U.S. student-loan business and a Japanese brokerage operation. The unit also contained a big private-label credit-card business, which Citi decided last fall after the operation improved.
At the start of this year, Mr. Corbat was sent abroad to learn more about Citi's operations as head of the bank's Europe, Middle East and Africa operation. A Salomon Brothers veteran, he joined Citi after Salomon was acquired by Travelers, which then merged with Citi in 1998.
Mr. Corbat has also run several other units of the bank, including wealth management, global corporate and commercial banking and emerging markets debt.
In an internal memo announcing the executive shake up, Mr. Corbat told Citi employees he would make "changes" after taking time to review the company and its structures.
Vikram Pandit Resigns
"I am confident that we can realize Citi's full potential while serving clients and creating rewarding new opportunities for our employees," he wrote in the memo, which was reviewed by The Wall Street Journal.
The bank's announcement of the management change said Mr. Corbat was known within the company for "enhancing productivity, holding people accountable and practicing sound risk management."
Mr. Corbat graduated from Harvard University in 1983 with an economics degree, and was an all-Ivy offensive guard on the school's football team. In a 1982 profile in the Harvard Crimson, which described him as 6'3" and 230 pounds, he said he was already pursuing a career in investment banking rather than playing professional football, adding: "I'm just not psyched to be somebody's piece of meat somewhere."
In a research note, Ed Najarian, head of bank research at ISI Group, said it was a positive sign that Mr. Corbatt wasn't named CEO on an interim basis, which could have signaled more bad news on the way.
"It appears to us that Mr. Corbat is highly respected within the organization and should bring a lot of energy in his new role as CEO," the note said. "Importantly, he has indicated that he doesn't plan to change the strategy that Vikram has put in place." |
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