Citigroup combines divisons

28 August 2007

Citigroup is combining its emerging markets credit trading and global credit trading businesses into one single division.

According to Reuters an internal memo dated August 24th said it is combining the two groups to be led by Carey Lathrop, who was previously the head if the emerging markets business.

The heads of the global trading division, Jim Higgins and Dave Pichler, will leave the company.

After several years of growth there has been a break in the demand from investors for securities backed by U.S. sub-prime and nonconforming mortgages.
"The growth, product innovation, and global nature of flows in the credit markets over the last several years has been unprecedented,'' Chad Leat and Mark Watson said in the memo, reported by Bloomberg.

According to the memo reported by Reuters, heads of global credit markets, Chad Leat and Mark Watson said: "Combining these businesses will assure our continued dominance in both the international trading markets, and the fast growing local markets"

Six months ago Citigroup combined its global loans and leveraged finance business with its emerging markets debt capital markets business.

Expansion in the growing markets of China and India is an aim of Citigroup chief executive, Charles Prince according to Bloomberg.

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