March 28 (Bloomberg) -- Citigroup Inc. hired Terri Dial from Lloyds TSB Group Plc to lead the bank's U.S. consumer unit and replaced the co-heads of prime brokerage, extending a management shakeup following Vikram Pandit's appointment as chief executive officer.

Dial, 58, has overseen U.K. consumer banking for London- based Lloyds TSB, which announced her departure in a statement today. A person close to Citigroup confirmed that she is joining the New York-based company. Nick Roe, 42, who runs Citigroup's prime brokerage in Europe, will replace the departing co-heads of the business, Ali Hackett and Tom Tesauro, according to a memo from Steve Bowman, the bank's hedge-fund services chief.

Pandit, who succeeded Charles O. ``Chuck'' Prince in December, is racing to reconfigure the bank after $20 billion of writedowns helped wipe out more than half its market value in five months. Oppenheimer & Co. analyst Meredith Whitney quadrupled her estimate of Citigroup's first-quarter loss this week to $1.15 a share on expectations of additional writedowns. The bank is set to report quarterly results on April 18.

``For Pandit it's the case of a new broom sweeps clean,'' said Rupert Della-Porta, the chief operating officer at Atlantic Equities in London. ``You should expect a rotation of people.''

Pandit has already promoted John Havens, 51, to oversee the bank's securities unit and named new heads of risk management and administration.

Shares Decline

Citigroup fell 96 cents, or 4.4 percent, to $20.83 at 4:08 p.m. in New York Stock Exchange composite trading. The shares reached a 52-week high of $55.55 last May, and have fallen about 29 percent this year.

Dial, who joined Lloyds TSB in 2005, previously worked for almost 30 years at San Francisco-based Wells Fargo & Co., where she oversaw the firm's banking business in California.

Lloyds TSB Chief Executive Officer Eric Daniels hired Dial to help lift revenue. The company's U.K. division increased pretax profit 20 percent in the second half of 2007 by restraining costs, increasing mortgage lending and attracting more deposits as the economy weakened.

``Dial has done a terrific job streamlining the business, focusing on new sales and keeping a lid on costs,'' said MF Global Securities Ltd. analyst Mamoun Tazi in London. Tazi has a ``buy'' rating on Lloyds TSB stock.

Revenue Growth

Revenue at the Citigroup U.S. consumer unit that Dial will lead rose 6 percent to $8.4 billion in the fourth quarter, compared with a year earlier. Globally, the division's revenue climbed 21 percent to $15.5 billion.

Dial's appointment was reported earlier today by the Wall Street Journal. She is replacing Steven Freiberg, who will run Citigroup's global credit-card business, the paper said.

The hiring is part of a broader reshuffling the bank will announce next week that splits units geographically, rather than by business line, according to the Journal. Ajay Banga, the current head of Citigroup's consumer business outside the U.S., will lead the Asian division, and it isn't yet clear who will be picked to oversee Europe, the newspaper said.

Citigroup spokesman Adrian Russell declined to comment.

Roe, who will remain in London, joined Citigroup in 2005 from Deutsche Bank AG, where he ran global prime brokerage services. His appointment was reported late yesterday by the New York Times.

Pandit's Plan

Pandit, 51, plans to tell shareholders how he intends to rebuild Citigroup after the company lost about $150 billion of market capitalization since the start of 2007. The bank is cutting about 10 percent of the securities unit after the collapse of the subprime mortgage market triggered the biggest loss in its 196-year history.

Pandit, a former Morgan Stanley investment banker who joined Citigroup last July to oversee hedge funds and private equity, said in December that he's conducting a ``front-to-back'' review, scheduled to be completed in May. The review will help determine which assets should be sold.

Citigroup posted a record loss in the fourth quarter of 2007 after rising defaults on home loans forced the company to write down $18 billion of subprime mortgage investments. The bank cut its dividend for the first time after reporting a loss of $9.83 billion, or $1.99 a share. Whitney at Oppenheimer said today she expects Citigroup to reduce its quarterly payment to shareholders again this year because of ``earnings headwinds.''

Citigroup lost the title of biggest bank by market value during the fourth quarter to Bank of America Corp. in Charlotte, North Carolina. New York-based JPMorgan Chase & Co. took the second spot in January.

To contact the reporters on this story: Bradley Keoun in New York at bkeoun@bloomberg.net; Joyce Moullakis in London at jmoullakis@bloomberg.net.

Last Updated: March 28, 2008 16:12 EDT