Citigroup Inc., the biggest bailout recipient among U.S. banks during the financial crisis, hired former White House Budget Director Peter Orszag to be vice chairman of its investment-banking division.
Orszag, 41, who left President Barack Obama’s cabinet in July, will report to John Havens, chief executive officer of the firm’s institutional client group, the New York-based lender said in a statement today. To comply with “applicable ethics rules,” Orszag’s work at Citigroup won’t involve contact with U.S. federal government officials.
An economist trained at Princeton University and the London School of Economics, Orszag helped shape U.S. economic stimulus during the financial crisis and overhaul the health-care system. He spent 18 months as Obama’s budget director.
“Peter brings a tremendous amount of knowledge as well as key private-sector and government experience,” Havens, 54, said in the statement. “His expertise in economic policy will complement our investment banking franchise around the world.”
After leaving the government, Orszag became a distinguished visiting fellow at the Council on Foreign Relations and a contributing columnist for the New York Times, writing about health care, budget policy and Social Security. His successor as budget director, Jacob Lew, worked at Citigroup from 2006 to 2009.
Citigroup got a $45 billion bailout in 2008. It repaid $20 billion of last year and the rest was converted into stock. The U.S. Treasury Department sold its remaining stake in the bank this week.
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