In a strategic move shaking up the financial landscape, Citigroup has secured Viswas Raghavan, formerly of JPMorgan Chase, as its new Head of Banking. This decision has set off a chain reaction within JPMorgan, leading to a significant reshuffle of top executives.
Raghavan, who most recently served as JPMorgan’s head of global investment banking, is slated to join Citigroup in the coming summer, according to an internal memo from Citigroup’s CEO Jane Fraser.
Following Raghavan’s departure, JPMorgan named Doug Petno and Filippo Gori as co-heads of global banking, marking a restructuring of the business. This move is part of a broader initiative by JPMorgan to optimize its organizational structure and leadership team, as indicated in a memo seen by Reuters.
Citigroup’s decision to bring Raghavan on board comes amidst its largest reorganization in decades. Under the leadership of CEO Jane Fraser, the bank has announced plans to reduce its headcount by 20,000 over the next two years. Fraser has been proactive in recruiting new talent to support the bank’s overhaul, including the appointment of Andy Sieg from Bank of America to lead the wealth division.
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Raghavan At JPMorgan
Raghavan’s track record of leadership at JPMorgan, where he previously led investment and corporate banking in Europe, the Middle East, and Asia, makes him a valuable addition to Citigroup’s team. In his new role, Raghavan will collaborate with Ernesto Torres Cantú, Citigroup’s head of international, and David Livingstone, who leads its newly established client division.
Financially, Citigroup’s banking division has shown promising growth, with a 22% increase in revenue to $949 million in the last quarter. Meanwhile, JPMorgan reported a 3% rise in corporate and investment banking revenue to $11 billion, and a 7% increase in commercial banking revenue to $3.7 billion in the fourth quarter.
JPMorgan’s new structure will consolidate commercial, corporate, and investment banking under a unified division called global banking. Petno, who has led commercial banking since 2012, will serve as co-head alongside Gori, who will also take on the role of CEO for the Europe, Middle East, and Africa region.
This move follows JPMorgan’s earlier executive shuffling in its investment banking and consumer units, reflecting a strategic focus on grooming leaders and succession planning, particularly in light of CEO Jamie Dimon’s eventual succession.
This development signals a bold strategic move aimed at strengthening Citi’s banking division and driving growth amidst a period of significant transformation. As the financial landscape continues to evolve, these developments will undoubtedly shape the future trajectory of both institutions which is worth following closely in the days to come.
