Citigroup Inc. has removed the leaders of its global equities unit and named a Citigroup International executive to succeed them.
James Forese has been the head of emerging markets and local finance for Citigroup International. He will report to Charles Prince, the chairman and chief executive officer of Citi's global corporate and investment bank, which oversees several businesses, including global equities and Smith Barney.
It is not yet clear whether Robert DiFazio and Arthur Hyde, both former managing directors and co-heads of global equities, will leave the company, a spokeswoman said. In a memo, Mr. Prince called the changes part of a "comprehensive review of our global equity business."
The moves are just the latest jolts in the division's turbulent ride over the past year. After an embarrassing summer that culminated with a former Salomon Smith Barney analyst, Jack Grubman, testifying to Congress about research and the firm's investment banking activity, Citi initiated a number of changes.
Mr. Grubman was forced out in mid-August, and the next month Michael Carpenter was ousted as the unit's chief executive. He remains with Citi in a diminished role. (Both Mr. DiFazio and Mr. Hyde reported to Mr. Carpenter before his departure.)
Shortly after, Citigroup divided Salomon Smith Barney into several parts. It renamed the equity research and brokerage businesses Smith Barney and hired Sallie L. Krawcheck to run them.
Though the moves represent an almost total management overhaul, Citi has not ruled out further changes or job cuts, particularly if the economy remains anemic. Some reports Thursday said it is firing 100 as part of the shake-up.
In addition, the Nasdaq Stock Market Inc. announced Thursday that Richard Ketchum, its president and deputy chairman, will leave the company on June 17 to become the general counsel of Citi's global corporate and investment bank. He will report to Bob Druskin, the bank's president and chief operating officer.
Mr. Ketchum started his career as a regulator in 1977 with the Securities and Exchange Commission, where he worked for 14 years, the last eight as the director of the division of market regulation. In 1991 he joined the National Association of Securities Dealers, becoming the president and chief operating officer in 1993. He joined Nasdaq in 2000.
The changes at Citi's global corproate and investment bank underscore the struggle Wall Street has had in equities, especially in trading and sales. Several other firms have slashed equity staffs and made top management changes in the face of declining revenues. Earlier this year, J.P. Morgan Chase & Co. fired two high-profile executives it had lured from Goldman Sachs Group just two years ago and replaced them with a long-time J.P. Morgan executive.
"No one is seeing a recovery," said Robert Albertson, the chief strategist at Sandler O'Neill Partners.
