Citigroup’s Forese Said to Revamp Transaction Services

Citigroup Inc.’s Francesco Vanni d’Archirafi will step down as head of transaction services and Julie Monaco will join the investment bank as the firm overhauls management, a person with knowledge of the matter said.

Monaco, who ran transaction services in North America, will lead the public sector group for the investment bank and won’t be replaced, said the person, who requested anonymity because the move hasn’t been announced. She replaces Zubaid Ahmad, who stays to concentrate on sovereign wealth funds, the person said. Vanni d’Archirafi will take an unspecified new role, according to an internal memo obtained by Bloomberg News.

Chief Executive Officer Michael Corbat and his head of institutional businesses Jamie Forese are reshaping transaction services, which had more revenue in 2012 than the New York-based lender’s investment bank, equities-trading and private bank units combined. Corbat promoted Forese to co-president in January.

“This new alignment will not only prove to be a more efficient operating model, but will also allow us to deliver our full capabilities to our target client base far more effectively,” Forese said in the memo.

Vanni d’Archirafi, Monaco and Ahmad didn’t respond to inquiries about the changes, and Danielle Romero-Apsilos, a spokeswoman for the company, said Citigroup had no comment. The firm ranks third by assets among U.S. lenders. The Wall Street Journal reported elements of the reorganization earlier today.

Forese’s Promotion

Corbat named Forese head of Citigroup’s institutional clients group in January, months after replacing Vikram Pandit as CEO of the bank, the third-biggest in the U.S. The move placed Forese atop transaction services for the first time, adding to his role as head of trading and investment banking.

Vanni d’Archirafi, 53, who began his career with Citigroup in 1983, took over the division in April 2009 and ran one of the firm’s biggest revenue centers. Sales were $10.9 billion in 2012, about 15 percent of the company’s total. The unit made a $3.5 billion profit for the year, while the entire bank posted net income of $7.5 billion.

The business works with corporate and public-sector customers and products including cash management, trade finance and custodian services. The unit has $13.2 trillion of assets under custody and it processes more than $3 trillion of transactions each day, according to Citigroup’s website.

Job Eliminated

The new structure eliminates Vanni d’Archirafi’s position. The heads of the two divisions that make up transaction services -- securities and fund services head Neeraj Sahai and Naveed Sultan, head of treasury and trade solutions -- will report directly to Forese, according to the memo.

Monaco joined Citigroup from JPMorgan Chase & Co. in 2007, according to her LinkedIn page. She previously worked for Deutsche Bank AG and graduated with a master’s degree in business administration from New York University, the profile shows. In her new role as head of the public sector group, she will report to Raymond J. McGuire, head of the bank’s advisory operations.

As head of the transaction services business in North America, she led a team responsible for “the banking needs of more than 8,000 corporations, financial institutions and PSG clients,” McGuire said in another internal memorandum obtained by Bloomberg News. “Julie has more than 26 years of experience in banking and brings a wealth of expertise to our franchise.”

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