Citi Smith Barney Head, Michael Corbat, Now Head of “Bad Bank”

Apr 6, 2009 3:03 PM, By John Churchill

Just over six months after he was named the new leader of Citi Global Wealth Management, Michael Corbat is bouncing to another post. Today, the firm named Corbat CEO of Citi Holdings.

Corbat, a career investment banker and relative unknown in the retail brokerage side of the business, took over from Sallie Krawcheck as CEO of Global Wealth Management in September 2008. The move coincided with a realignment of retail brokerage, which now reports to investment banking on the organizational chart. The shuffle was made to cut costs. (Rep. wrote a story on Corbat’s rise. You can read it here.)

Citi Holdings, the “bad bank” unit, houses an estimated $850 billion of assets including Smith Barney, which entered into a joint venture with Morgan Stanley in January, CitiFinancial and CitiMortgage finance operations as well as the Primerica insurance unit and Nikko Cordial unit in Japan. It also includes roughly $300 billion of troubled assets. Citicorp, the centerpiece of the “good bank” portion of the firm, has roughly $1.1 trillion in assets the firm intends to keep, including retail and investment banking and Citi Private Bank.

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