Citi’s New CEO Must Fix Old Problems Fast
While other bank CEOs can plan for a fintech future, Jane Fraser’s immediate focus at Citi is on legacy issues.
Citi’s Jane Fraser is taking on some challenges her two predecessors have struggled to complete.
Photographer: Rodrigo CapoteJane Fraser is about to join an elite group. From next month, she’ll be one of a handful of women pulling strings in global finance. But the incoming Citigroup Inc. chief executive officer inherits a challenging fix-it job. The question is whether she’s able to deal with the bank’s legacy issues fast enough so she can then get on with its bigger strategic challenges.
Years of deficiencies in Citigroup’s risk oversight and governance have attracted the attention of regulators (and a $400 million fine last year). Priority one must be strengthening controls and bolstering the confidence of supervisors. This behemoth is not as profitable as peers either. Unfortunately for Citigroup, contraction in some of its markets can only complicate its ambitions to close the gap.