Citi named Jane Fraser as CEO, the first woman to head a major US bank

Fraser is currently in charge Of the city (C) Consumer Bank is set to take over in February for Michael Corbett, who plans to retire after 37 years at the bank.

“I have worked with Jane for many years and I am proud of her success,” Corbett said in a statement. “With his leadership, experience and values, I know he will make an outstanding CEO.”

The bank’s 16-year veteran Fraser was succeeded in October when Citi elevated him to the role of president.

Fraser follows in the footsteps of other high-ranking women in finance. Sallie Krawcheck served as a senior executive at City and Bank of america (BAC) During the 2008 financial crisis. Marianne was hired as Lake Chief Financial Officer JPMorgan Chase (JPM) in 2012. And Beth Mooney took over in 2011 KeyCorp (The key) In 2011, she became the first female CEO of a top 20 US bank.

In the public sector, Janet Yellen led the Federal Reserve, the world’s most powerful central bank, from 2014 to 2018. And even Citi made its historic announcement, European Central Bank President Christine Lagarde briefed reporters. A press conference.

“I am grateful to Mike for the Board’s decision and its leadership and support,” Fraser said in the statement. “City is an incredible institution with proud history and a bright future. I am excited to join my colleagues in writing the next chapter.”

Record-high female CEO, but still a small percentage

Prior to taking over Citi’s Consumer Bank, Fraser led the bank’s Latin America division as well as its corporate strategy and M&A group. Fraser also led Citibank’s private bank from 2009 to 2013. Prior to joining City, Fraser worked in consulting at Vishal McKinsey and the M&A department Goldman Sachs (GS).
During an August 2018 interview, Poppy Harlow of CNN asked Fraser about the possible breaking of the glass ceiling on Wall Street.

“I look forward to seeing a woman become the first CEO of a Wall Street firm, whatever,” Fraser told Harlow. “I never had the ambition to become the CEO of Citi or any other organization. Things can change over time. But at the moment, I still have a lot to learn.”

Fraser will join a record-high number of women heading Fortune 500 companies. in recent months, Clorox (CLX), Coty (COTY), Difference (GPS) And UPS (UPS) Name of female CEO. Yet, less than 10% of Fortune 500 CEOs are women and only three are women of color.

City’s share price is lagging

Corbett took over the reins of the city in 2012, at a time when banks were recovering from the financial crisis. Corbett replaces controversial former CEO Vikram Pandit.

“I am extremely proud of what we have done in the last eight years,” Corbett said in a statement. “We completed our transformation from the financial crisis and emerged as a simple, safe and strong institution.”

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Corbett noted that Citi’s net income was around $ 20 billion during his tenure last year and that the bank was able to return approximately $ 80 billion in capital through dividends and buybacks.

But like other banks, Citi is struggling with an uncertain background of high unemployment and low interest rates. Citi’s profits declined 73% during the second quarter as the epidemic increased the bank’s loan costs.
Citi has lost a third of its market value this year, not only the S&P 500 but rivals including JP Morgan and Bank of america (BAC).