July 5 (Bloomberg) -- Citigroup Inc., the New York-based bank that reorganized its trading desk this year, hired JPMorgan Chase & Co.’s John Novak for its equities unit.
Novak, head of U.S. cash equities sales trading, resigned today from JPMorgan, said Jennifer Zuccarelli, a spokeswoman for the New York-based bank. He will be a sales trader and report to Citigroup U.S. head of cash equity sales trading Dan Sanders after a mandatory 90-day period of “garden leave,” said Danielle Romero-Apsilos, a Citi spokeswoman.
Citigroup Chief Executive Officer Vikram Pandit reshuffled trading operations this year, promoting James Forese to head of securities and banking in January. The equities unit is run by Derek Bandeen, who appointed Mike Pringle as head of trading in April. The bank, the third-largest in the U.S., said first-quarter equities-trading revenue fell 12 percent to $1.1 billion from the year-earlier period.
Average daily equity-trading in the second quarter on the largest U.S. exchanges fell 31 percent from a year earlier and 9.6 percent from the prior period. Equity trading at JPMorgan generated $1.4 billion, or 17 percent, of the investment bank’s $8.2 billion in revenue in the first quarter. Analysts including Nomura Holdings Inc.’s Glenn Schorr cut JPMorgan’s second-quarter earnings estimates in part because of “sluggish” trading.
Novak, who reported to Adam Englander in the investment bank, joined JPMorgan in 1996, according to his profile on LinkedIn. He graduated from Lehigh University in 1992, according to the profile.
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