Citigroup Inc. (NYSE: C) is making some organizational changes today. The troubled financial and banking supermarket has announced a reorganization of Citi’s structure with what it hopes to achieve greater client focus, connectivity, and clear accountability.
Citi has established more of a regional structure to bring decision-making closer to clients, and leaders of the geographic regions will have the authority to make decisions at the local level. Each geographic region will have a single chief executive officer who reports to CEO Vikram Pandit.
Teresa A. “Terri” Dial has also been appointed as CEO of Citi Consumer Banking in North America and named Global Head of Consumer Strategy, reporting directly to Citi Chief Executive Officer Vikram Pandit. This will help to effect a split of the card unit from its banking operations.
Could a regional break-up come instead of a unit break-up? Highly unlikely. Could this lead to a separate card business down the road? Possibly.
Shares of Citi closed at $20.83 Friday and pre-market indications aren’t giving this any great marks nor any poor ones so far. Shares are indicted flat, although that may change as we get within two-hours of the market open.
Jon C. Ogg
March 31, 2008
Jon Ogg produces the Special Situation Investing Newsletter and he can be reached at email@example.com; he does not own securities in the companies he covers.