Citigroup's Jane Fraser to be first woman to head major Wall St bank

Citigroup's consumer banking head Jane Fraser will succeed Mr Michael Corbat next year as the bank's chief executive officer. PHOTO: AGENCE FRANCE-PRESSE
Citigroup's consumer banking head Jane Fraser will succeed Mr Michael Corbat next year as the bank's chief executive officer. PHOTO: AGENCE FRANCE-PRESSE

NE W YORK • Citigroup Inc on Thursday named consumer banking head Jane Fraser to succeed Michael Corbat next year as the bank's chief executive officer, making her the first woman to lead a major Wall Street bank.

Ms Fraser, 53, has been a rising star in the financial industry, with a career spanning investment banking, wealth management, troubled mortgage workouts and strategy in Latin America - a key business for Citigroup.

Her promotion to CEO was widely expected since being elevated to Citigroup president last year, and was celebrated as a step in the right direction for an industry that has few women or diverse executives in its top ranks.

"Great news for the company and for women everywhere!" tweeted Bank of America Corp operations and technology chief Cathy Bessant. "A big and fantastic moment."

Citigroup shares were up 1 per cent in morning trade.

Indeed, Ms Fraser joins a small group of women who have broken through the glass ceiling to reach the C-suite at major financial firms. In addition to Ms Bessant, there is Fidelity Investments CEO Abigail Johnson, JPMorgan's consumer lending head Marianne Lake and its finance chief Jennifer Piepszak, and British bank NatWest CEO Alison Rose.

Ms Fraser launched her career at Goldman Sachs in its mergers and acquisitions department in London, and then worked for Asesores Bursátiles in Madrid. She joined Citigroup 16 years ago and is credited internally with helping the bank recover after the financial crisis, when it had to take US$45 billion (S$61 billion) in taxpayer funds to survive.

Through the years, she has run client strategy in Citi's investment bank, as well as its private bank, its mortgage business and its operations in Latin America, which accounted for 14 per cent of annual revenue at the end of last year. Her name was floated last year as a potential CEO candidate at Wells Fargo and Co, before the board settled on former JPMorgan executive Charles Scharf.

In October, Ms Fraser was promoted to the role of president and tasked to head its global consumer bank, a move that was widely seen as a precursor to her elevation.

Credit Suisse analyst Susan Roth Katzke said the promotion came sooner than expected, and that investors are eager to get an audience with her. "Investors will need to hear more from Jane, sooner rather than later," she said.

Mr Corbat was launched into the CEO role in 2012, when his predecessor suddenly left under pressure from investors. Since then, he has shifted Citigroup's strategy to focus on corporate businesses where it has strengths, such as fixed income trading and cash management, as well as credit cards and digital consumer banking.

  • WOMEN AT THE TOP

  •  • Ms Jane Fraser joins only a handful of women who have reached the top ranks of the industry. They include:

     • Ms Cathy Bessant, Bank of America Corp operations and technology chief

     • Ms Abigail Johnson, Fidelity Investments CEO

     • Ms Marianne Lake, JPMorgan consumer lending head

     • Ms Jennifer Piepszak, JPMorgan finance chief

     • Ms Alison Rose, CEO of British bank NatWest

He also wound down a huge book of troubled assets known as Citi Holdings, effectively transforming the bank from a bailed out, money-losing entity with operations spanning the world into a slimmer, more profitable version with targeted global operations.

He will officially hand the reins to Ms Fraser in February, Citigroup said in a statement. "We believe Jane is the right person to build on Mike's record and take Citi to the next level," said Mr John C. Dugan, chair of the board of directors at Citi.

REUTERS

A version of this article appeared in the print edition of The Straits Times on September 12, 2020, with the headline 'Citigroup's Jane Fraser to be first woman to head major Wall St bank'. Print Edition | Subscribe