Citi merges U.S. leveraged finance with syndication

NEW YORK Fri Jan 25, 2013 11:38am EST

People walk past a Citibank branch in New York, October 18, 2010. Citigroup Inc reported its third straight quarterly profit, beating forecasts and boosting optimism that the banking sector is on track to recover even amid a tepid economic expansion. REUTERS/Brendan McDermid

People walk past a Citibank branch in New York, October 18, 2010. Citigroup Inc reported its third straight quarterly profit, beating forecasts and boosting optimism that the banking sector is on track to recover even amid a tepid economic expansion.

Credit: Reuters/Brendan McDermid

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NEW YORK (Reuters) - Citigroup Inc has combined its U.S. leveraged finance and syndication teams to improve its coverage of clients and capitalize on synergies, the bank said in a memo to employees.

The move follows the successful model the bank has implemented in investment grade debt and equity capital markets, according to the memo, which was sent to Citi employees on Thursday and relayed to Reuters by a person familiar with the matter on Friday.

The merger of the leveraged finance and loan syndication teams is not expected to result in any job cuts, the person added.

Citi declined to comment.

In the memo, Citi said Tom Cole and John McAuley will be co-heads of U.S. leveraged finance and Barbara Matas will be chairperson of U.S. leveraged finance, effective immediately.

They will report to John Chirico and Richard Zogheb, co-heads of capital markets origination for the Americas.

Citigroup's new chief executive, Mike Corbat, has promised investors the third-largest U.S. bank will do a better job delivering value for shareholders during his tenure, after the board abruptly ousted his predecessor, Vikram Pandit, in October.

Bloomberg News reported on the merger of the leveraged finance and loan syndication units earlier on Friday.

(Reporting by Greg Roumeliotis in New York; Editing by Steve Orlofsky)

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