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Citi investment bank head Paco Ybarra to leave after 36 years at lender

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Paco Ybarra, Citigroup’s funding banking head and chief of the financial institution’s largest enterprise unit, is to depart the corporate in essentially the most important administration departure since Jane Fraser turned chief government greater than two years in the past.

Ybarra, a 36-year veteran of Citi, joined the financial institution as a junior supervisor in Madrid earlier than climbing the ladder to change into head of debt buying and selling. In 2019, Citi’s then-chief government Michael Corbat named him as head of Citi’s giant institutional consumer group, which additionally contains the financial institution’s transaction companies enterprise.

Ybarra, 61, mentioned the choice to depart was his personal and adopted a interval of debate with Fraser. He mentioned that they had lately come to the conclusion that it was the suitable time for him to maneuver on.

“That is my retirement from Citi, however I don’t plan to vanish,” Ybarra instructed the Monetary Occasions. “I don’t suppose I’m simply going to play golf, however I don’t know what’s subsequent.”

The transfer comes shortly after Citi introduced plenty of senior administration modifications, together with a major rent in wealth administration, Andy Sieg from Financial institution of America. It additionally comes as Fraser is restructuring the financial institution.

Citi’s income fell within the second quarter and, together with Goldman Sachs, it was one of many few giant US banks that reported a decline in year-on-year income for the interval.

Citi has not named a substitute for Ybarra, and has not mentioned if it is going to. The transfer might permit Fraser to streamline higher administration, one thing she has signalled she want to do, doubtlessly eradicating a layer between her and plenty of Citi’s key enterprise models.

Ybarra will stick with the financial institution to assist with the transition and plans to depart sooner or later within the first half of subsequent yr.

“I feel now we have achieved an excellent job in executing on our technique to simplify and focus the enterprise on key areas,” Ybarra instructed the FT. “I’m sticking round to be a part of these discussions concerning the future management of Citi’s institutional enterprise however I don’t know what the results of that can be.”

Fraser introduced the departure internally on Thursday in a memo to staff, which was seen by the FT. Fraser mentioned within the memo that no resolution had been made on what the brand new management of Citi’s giant industrial consumer enterprise can be, or how it will be structured.

“I count on that we’ll full our evaluation and be able to share selections with you within the coming months,” Fraser wrote. “Within the meantime, I do know Paco and his management crew will stay totally targeted on delivering our priorities and serving our purchasers with excellence.”

Of Ybarra, Fraser mentioned, “These of us who’ve the privilege of working with Paco admire his humbleness, curiosity and extremely sharp instincts. Personally, I deeply worth his counsel and partnership, particularly throughout my early days as CEO as we labored to develop a daring imaginative and prescient for Citi.”