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Citigroup To Double North America Private Banking Force

Last Update: 3/10/2010 9:22:46 AM



By Brett Philbin
Of DOW JONES NEWSWIRES


NEW YORK (Dow Jones)--Citigroup Inc. (C) plans to roughly double the size of its
private banker force in North America over the next several years.

In an interview with Dow Jones Newswires, Citi Private Bank's North America Chief
Executive Peter Charrington says he would like the unit, which boasts 130
bankers, to reach a total of about 260.

Building up the private bank, which targets investors with a net worth of at
least $25 million, is an important growth area for Citi after the bank formed a
joint venture with its Smith Barney brokerage and Morgan Stanley (MS) nearly a
year ago.

"We have 22 locations in North America and will add selectively by putting talent
in key markets," Charrington said.

Charrington was named CEO of Private Bank, North America in June after leading
Citi's ultra-high-net worth businesses in the United Kingdom, Israel and Monaco.

Since last summer, Citi has added private bankers in North American regions
including Miami and Connecticut, and filled management roles including global
chief investment officer and global head of asset allocation.

The Private Bank also added regional executives such as Michael Smith and Mark
Connally from Barclays Wealth, a unit of Barclays PLC (BCS), who are tasked with
recruiting additional talent.

Citi Private Bank has $90 billion in client business volume - a figure which
includes investments, cash management, and credit among other things. The Private
Bank has an ultra-high-net worth business, but also caters to the wealth
management needs of attorneys in its law firm group.

Some major competitors in the ultra-high-net-worth arena are J.P. Morgan Chase &
Co.'s (JPM) Private Bank, Bank of America Corp.'s (BAC) Merrill Lynch Private
Banking & Investment Group, or PBIG, UBS AG's (UBS) Private Wealth Management
group, and Barclays Wealth.

While Citi Private Bank was previously aligned with Smith Barney, the bank is now
under Citi's institutional clients group. The shift has given bankers in the unit
exclusive access to wealthy clients and eliminated any previous overlap with
high-producing Smith Barney brokers.

That lack of overlap with Smith Barney could be one reason why Charrington said
Citi is receiving the resumes of professionals "we wouldn't have seen 18 months
ago."

The connection with the institutional group means "clients now have access to
sophisticated capital markets, access to the investment bank, access to research,
and investment opportunities around the world," Charrington said.

"They have, for example, access to emerging markets - China, India, Brazil, and
Southeast Asia," he said.

Charrington says with the stock market's recovery from its lows a year ago, Citi
is beginning to see more interest from clients in areas such as distressed asset
purchases, residential real estate purchases, jet financing and art financing.

Citi plans to grow its private bank organically, Charrington says, and it has "no
plans to do acquisitions at this stage."

-By Brett Philbin, Dow Jones Newswires; 212-416-2173; [e-mail]

(END) Dow Jones Newswires

March 10, 2010 09:22 ET (14:22 GMT)