Citigroup Inc. have axed trading chief Thomas Maheras, following losses of $6 billion.
According to Bloomberg, Vikram Pandit, a former Morgan Stanley executive, will oversee trading, investment banking and alternative investments.
In addition, Randy Barker, a fixed-income executive, will also leave the bank and along with Maheras, represents the first high-profile casualties at the bank following its losses.
Last week, the bank declared that losses in third quarter profits fell by 60% following the effects of the sub-prime mortgage crisis in the US. James Forese, head of stock trading, will take up Maheras’ position and will assume responsibility for sales and trading.
“The company could have managed the turbulent credit markets better than it did, and obviously they’re making personnel changes to address the problem,” says Mark Batty, an analyst at PNC Wealth Management, speaking to Bloomberg.
Citigroup are not alone in firing high-level figures, Merrill Lynch & Co., Bear Stearns and UBS have also announced departures.