Citigroup to name new U.S. consumer chief in shuffle

By Dan Wilchins and Jonathan Stempel

NEW YORK (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research) is hiring Terri Dial, credited with reviving Lloyds TSB Group Plc's U.K. retail banking operations, to take over its flagging U.S. consumer business, a person familiar with the matter said on Friday.

Dial will become Citigroup's global head of consumer strategy, but the 58-year-old California native's primary task will be to improve U.S. retail banking and consumer finance, the person said.

Lloyds shares dipped 2 percent in Friday trading in London on news of Dial's departure.

Citi Chief Executive Vikram Pandit is reviewing the bank top-to-bottom to improve profitability and rejuvenate a stock that has fallen more than 50 percent in the last year.

Retail banking is an important area for Citi. Its U.S. consumer business lost $432 million in the fourth quarter and its full-year profit fell 51 percent to $4.11 billion. In 2006, U.S. consumer businesses accounted for about a third of Citi's income.

Citigroup is likely to announce a shuffling of its retail and corporate banking structure, The Wall Street Journal reported.

Separately, Citigroup said it replaced Ali Hackett and Tom Tesauro, the co-heads of global equity finance and prime brokerage, according to a memo obtained by Reuters. Nick Roe, who had run the European part of that business, will replace them as head of global prime finance, reporting to hedge fund services chief Steve Bowman, who wrote the memo.

Dial is seen as having revived retail banking at Lloyds TSB, which she joined in 2005.