Sandy Jaffee Slides Down The Greasy Pole As Citibank Shakes Up Management

Citibank has confirmed long-anticipated changes in the organisation and senior management of its Global Transactions Services (GTS) businesses.
By None

Citibank has confirmed long-anticipated changes in the organisation and senior management of its Global Transactions Services (GTS) businesses. Most importantly, they see the formidable Sandy Jaffee reduced in status from leadership of an independent Global Securities Services (GSS) business to head of a financial institutions sales group within a greatly enlarged business division. The new head of GSS is Steve Bernstein, a new name in the custody business. To add insult to injury, the changes were announced by Frank Bisignano, a man who used to report to Sandy Jaffee, but who is is now (as Head of Global Transaction Services) her boss.

Personalities aside, it is understood that Citibank has sought to do two things with its reorganisation and management reshuffle. First, to reassure institutional clients of its commitment to the securities services business by putting GSS into a single division which encompasses cash, trade and treasury services as well. Secondly, by combining previously separate business lines into GTS, Citibank hopes to cross-sell cash management, treasury, trade finance, custody, clearing, depository receipt, and agency and trust services to a single base of existing and potential institutional and corporate clients. Though these businesses have long followed a single reporting line, they will henceforward operate as a consolidated unit, with one sales force for all products and services, charged with cross-selling.

The new structure divides the top jobs between three product lines (Securities Services, Cash Management and Trade) and two sales groups (Corporates and Financial Institutions) reporting to a single head of sales and marketing.

Steve Bernsteinl heads Securities Services, a job to which he comes from head of business continuity. He joined Salomon Brothers 20 years ago, rising to Managing Director in 1995. He spent five years in Tokyo as Chief Administrative Officer for the Nikko Salomon Smith Barney joint venture.

Paul Galant heads Cash Management. Galant returned to Citigroup from DLJ in 2000 as Managing Director and global head of eCommerce and Market Data Strategy for the bank. At DLJ, he was co-head of High Grade Debt Capital Markets and head of Financial Engineering.

Naveed Riaz heads Trade. Riaz joined Citibank in 1979, and most recently served as head of Citigroup International (formerly Emerging Markets) Operations and Technology from 2000 through 2002. Prior to that, he managed the Corporate Bank for the North Division of Latin America.

Chris Foskett is the new head of sales and marketing, a role to which he comes from a spell in the Insurance and Investment Industry Group at Citibank, where he ran insurance, fund management, pensions and healthcare relationships worldwide. Foskett joined Citibank in 1991.

Jaffee, meanwhile, will now head the Financial Institutions sales group. She has since 1995 been Group Executive of Citibank Global Securities Services.

The head of the Corporate sales group has yet to be announced.

Regional heads are also being appointed for Latin America, Europe, CEEMEA and Asia. Only one – Dardo Sabarots, who will be the head of GTS for Latin America – has so far been announced. Saborots reports jointly to both Jorge Bermudez, CEO Latin America, and Bisignano. He was previously Chief Operating Officer and Director of Global Products for e-Business. He was also CCO of Turkey from 1996 to 2000.