The New York-based firm's Head of Hedge Fund Services, Steve Bowman, in his internal memorandum to this division, reportedly said that Hackett and Tesauro left Wednesday to pursue other opportunities. Bowman further stated that Nick Roe, who is running Citi's European equity finance and prime brokerage, would be replacing both executives. Roe will continue to be based in London and remain in his current capacity, in addition to taking over the reins from Hackett and Tesauro.
Tesauro and Hackett, both veteran Citi managers, are credited for having built Citi's prime brokerage from scratch to one of its fastest-growing businesses, despite its late entry into the business of providing financing to hedge funds unlike its rivals. According to people close to the situation, profit in 2007 was up about 100% from the prior year.
Meanwhile, the Wall Street Journal, citing people familiar with the matter, reported on Friday that Citi is hiring Terri Dial to run its struggling U.S. consumer business. Dial is currently running Lloyds TSB Group's (LYG | news | PowerRating | PR Charts ) U.K. retail banking operation. According to WSJ, the appointment of Dial, an outsider, is part of a broader reshuffling of Citi's structure, which the firm might announce next week. Citi, under this restructuring, is expected to split most of its units geographically, unlike the current basis of splitting by business line.
In addition, the New York Times reported that Citi's investment bank is expected to dismiss about 10% or 2,000 of its work force by March end, besides the already 4,000 jobs cuts announced in mid-January. Other senior bankers are expected to receive pink slips soon, it added.
C closed Thursday's regular trading at $21.79, down $0.26, or 1.18%, on volume of 106.65 million shares.
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