Sallie Krawcheck, the chief executive officer and chairman of Citi Global Wealth Management, is set to leave the firm, according to a statement from Citigroup, the parent company.
Michael L. Corbat will take over from Krawcheck as CEO of the Global Wealth Management unit. According to the statement, Corbat has been with Citi's institutional business for 25 years, holding a variety of senior domestic and international roles. Most recently he was Global Head of the Corporate and Commercial Bank. In his new role, he will lead Citi's strategy for ultra-high-net-worth, high-net-worth, and emerging affluent clients.
In addition, Edward "Ned" Kelly will become head of Global Banking for the Institutional Clients Group (ICG). He most recently had served as President and CEO of Citi Alternative Investments. He is a member of Citi's Senior Leadership and Executive Committees. Before that, Kelly was a Managing Director at The Carlyle Group. He previously worked at Morgan Stanley as a senior investment banker and was a partner at the law firm, Davis Polk & Wardwell.
In the statement, Citigroup said: "Sallie Krawcheck has decided to leave Citi to pursue other opportunities and will remain as Chairman of GWM through the end of the year to ensure an orderly transition." Corbat and Kelly will report to John Havens, CEO of ICG.
It was unclear where Krawcheck is heading next. However, she is the latest high-ranking executive to leave the firm as well as other Wall Street brokerages.
Vikram Pandit, CEO of Citi since late last year, said in the statement: "Sallie Krawcheck has been an invaluable asset to the firm and a true thought leader within the industry. She has an impeccable reputation and has represented Citi well with our top clients and key constituencies around the world."
Rumors that Krawcheck might leave Citi had been swirling for months. Now, news of her departure comes during the historic upheavals that have shook the very foundations of Wall Street. Just last week, Lehman Brothers Inc. sought bankruptcy protection while Merrill Lynch was forced to sell itself to Bank of America. The Federal Reserve agreed to bail out AIG, the world's largest insurer with an $85 billion secured loan.
In an interview with ON WALL STREET magazine earlier this year, the 43-year-old Krawcheck denied that the Smith Barney unit was up for sale. "The firm was never for sale nor has any conversation ever been had about it," she told On Wall Street in its January 2008 issue.