Citigroup investment bank chairman Ned Kelly retires

NEW YORK Fri Jun 20, 2014 6:12pm EDT

A Citibank sign on a bank branch in midtown Manhattan, New York, November 17, 2010.   REUTERS/Mike Segar

A Citibank sign on a bank branch in midtown Manhattan, New York, November 17, 2010.

Credit: Reuters/Mike Segar

NEW YORK (Reuters) - Citigroup Inc (C.N) said on Friday that Ned Kelly, a former chief financial officer who went on to advise as chairman of the company's investment bank, is retiring.

Kelly, 61, will be replaced by Stephen Volk, who joined the bank in 2004 and will continue to be a vice chairman of Citigroup, a spokeswoman said.

A small group of senior client advisors, including Peter Orszag and Leon Kalvaria, who have been reporting to Kelly will report to Volk, she said.

Also this month, Jeffrey Small, general counsel of the investment bank, will retire and be replaced Adam Meshel who is already at the company.

The changes come as CEO Mike Corbat pushes to reduce costs and streamline management.

Kelly had been chief financial officer under former CEO Vikram Pandit, who the board of directors ousted in October 2012 and replaced with Corbat.

Kelly and Pandit clashed during the financial crisis with one of Citigroup's regulators, Sheila Bair, then chairman of the Federal Deposit Insurance Corp.

Kelly lost the CFO post after being quoted in The Wall Street Journal as calling the FDIC Citigroup's "tertiary regulator" behind the U.S. Federal Reserve and Comptroller of the Currency.

(Reporting by David Henry in New York; Editing by Grant McCool)

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California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

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