Citigroup said Wednesday that it merged the trust units of Citibank and Salomon Smith Barney to form a new company.
Citigroup Estate and Trust Services manages $30 billion of assets. The bulk of the assets came from Citibank, the company said, but it declined to break out the amount.
Lynn Davis from Citibank was named head of international trust and Jerald Hampton of Salomon Smith Barney will oversee the U.S. business. The trust assets are split between domestic and foreign business, with a heavier weighting offshore, Mr. Hampton said.
Ms. Davis will continue to report to Shaukat Aziz, executive vice president of Citibank Private Bank. Mr. Hampton will also report to Mr. Aziz, while continuing to report to Jay Mandelbaum, senior executive vice president of private client sales and marketing for Salomon Smith Barney.
Edward J. Orazem, head of Salomon Smith Barney's trust company and senior vice president of its private client division, reports to Mr. Hampton.
Increasing consumer demand for personal trust services in the United States, driven by burgeoning wealth created by the bull market, has drawn new providers to the business. The Citigroup merger brings together one of the most established trustees in the country with a relative upstart.
Citibank has provided personal trust services in the United States since 1812 and has had offshore capabilities for over 40 years.
Smith Barney Private Trust Co., on the other hand, had been up and running for four years, Mr. Hampton said.
The Salomon unit had 70 trust specialists, who were mostly salespeople, while Citibank had 79 trust officers. Trust officers primarily work in trust administration, which maintains ongoing contact with clients and involves investment management or disbursement matters.
"The Citibank side obviously had been around for an awful long time and has a greater reputation for trust administration and fiduciary excellence," Mr. Hampton said. Smith Barney had more people "in the field that can actually meet with clients and our financial consultants."
The new company creates "dynamics that we have not seen in the industry," he added.
Besides domestic trust, Mr. Hampton is also responsible for the estate planning and life insurance unit, as well as the retail annuity group.
