Citigroup Inc. has ousted two executives responsible for the bank’s mortgage-backed securities business, according to published reports, CNN reports.
The Wall Street Journal and Financial Times report that Michael Raynes, head of structured credit, and Nestor Dominguez, co-head of collateralized debt, left Citi yesterday.
The departures come after Citi took a $2.2 billion writedown in the third quarter related to sub-prime mortgage-backed securities and collateralized debt obligations.
Growing concerns about Citi’s investment bank led the company to combine two of its investment units into one earlier this month. Tom Maheras, a veteran of Citi’s capital markets business, left the firm as part of that shake up.
Pressure is growing on Citi CEO Chuck Prince following the retirement of Merrill Lynch’s Stanley O’Neal. O’Neal stepped down from Merrill on Tuesday after the company reported a staggering $7.9 billion writedown due to bad mortgage bets.