Citi Plans To Split Institutional Clients Unit: FT Reports

(RTTNews) - Citigroup chief executive Jane Fraser is considering a plan to disband the bank's major division, Institutional Clients Group, the Financial Times reported Monday citing people familiar with the proposal. The move is expected to hand more power to Fraser.

The Institutional Clients Group or ICG provides financial services to institutional investors and governments. As per the plan, the unit will be split into three primary business segments, such as investment and corporate banking, global markets and transaction services.

The newly separated units would be run by their current heads, who would report directly to Fraser.

As per the report, the internal discussions follow the company's announcement that ICG head Paco Ybarra would leave the firm by the middle of next year. The bank is yet to announce a replacement.

Citi has been operating with two divisions, ICG and a consumer division that includes Citi's retail bank, credit cards and wealth management.

The bank has already announced its plans to split wealth management from the rest of its consumer bank.

With the latest plan, if successful, would result in a total five divisions for the bank, including three commercial business units and two consumer units.