Jane Fraser is getting better at Citigroup


Jane Fraser wants to simplify Citigroup Inc., the original megabank. That will not be easy.

On Monday, Ms. Fraser takes over as CEO of the third-largest bank in the US Once the troubled son of the industry, the bank has stabilized and beefed up its defenses, proving to be robust and even profitable. during the pandemic. Unlike her predecessors, she comes to work at a time when Citigroup is relatively under the radar.

But Citigroup, which used to be the world’s largest financial services company, is struggling to keep up with its rivals. While Goldman Sachs Group Inc. and Morgan Stanley are hitting new highs in market value, Citigroup’s is half what it was in 2006. Its profits and revenues, once roughly double that of other large banks, are now have been overtaken by JPMorgan Chase & Co. and Bank of America Corp. And last fall, regulators ordered a review of vast systems that underpin its expanding operations, raising new questions about the bank’s complexity.

Ms. Fraser, the first woman to run a major US bank, now has to revitalize the $ 2.3 trillion behemoth.

It will have to juggle responding to regulators’ concerns, a costly multi-year project, with a reassessment of the bank’s strategy. Ms. Fraser, 53, has already released an “update” that she hopes can simplify the bank inside and out, making it easier to manage and improve.

.

Source link