Citigroup Poaches JPMorgan Executive as Part of Strategic Reshuffling
Citigroup (C.N), hired Viswas Raghavan to lead its new banking division from JPMorgan Chase (JPM.N), where a management reshuffle and business reorganization is taking place, according to the banks' memo to its staff.
As a bold move in Citigroup’s plan to revitalize its banking division, Viswas Raghavan, the seasoned executive from JPMorgan, will resume the role as head of banking and executive vice chair this summer, reporting directly to CEO Jane Fraser. His division is a key part of Fraser’s broader strategy to streamline the bank's operations and strengthen its competitive position in investment banking.
Timing and Strategic Impact
Raghavan spent nearly 25 years at JPMorgan, and has stepped in to lead the Europe, Middle East, and Africa (EMEA) region as CEO since 2017. He received mixed reviews over the years with a reputation for both boosting competitiveness and displaying micromanagement. His early career, which began at a disadvantage compared to peers from elite universities, saw him catch the attention of Daniel Pinto, the bank’s president and COO, who became one of his key allies.
However, when Pinto handed over control of the investment bank to Jennifer Piepszak and Troy Rohrbaugh earlier this year, Raghavan’s influence reportedly waned. Some insiders argue that with Pinto no longer at the helm, Raghavan found himself without the internal backing he once had, potentially prompting his departure for Citi. Piepszak and Rohrbaugh are expected to promote new talent, insiders suggest, favoring those with strong client relationships, which may have pushed Raghavan to seek new opportunities.
Raghavan’s leadership style has not always been well received. While some within JPMorgan credit him with increasing market share and driving the firm’s competitive edge, others have criticized his propensity for micromanagement. Despite these criticisms, his defenders argue that his tough approach was necessary for JPMorgan’s success, with one managing director noting, “We wouldn’t have gone up in league tables and increased market share without him.” Others describe him as rigorous and focused, unafraid of challenging conversations, though they acknowledge he is “not always the easiest” to work with.
His exit from JPMorgan also coincides with a series of high-profile departures from the bank’s investment division, though sources say Raghavan was not the reason behind these moves. Senior bankers like David Lomer and Hugo Baring left JPMorgan in 2022, but insiders suggest such turnover is typical in a competitive field where ambitious personalities frequently clash.
As Raghavan prepares to take the reins at Citi, there is speculation that his leadership will lead to both exits and new hires, particularly as he brings with him a network of loyal colleagues from JPMorgan. Citi’s market share in investment banking has fallen to just 3.4%, and Fraser appears to be banking on Raghavan’s track record to reverse that trend. His arrival could signal a shake-up in leadership dynamics, especially as Citi positions itself to regain ground in the sector.
As both Citigroup and JPMorgan undergo significant transitions, the broader implications for the banking industry remain to be seen. With Raghavan joining the team, Citigroup is clearly betting on his ability to bring about a much-needed transformation, but only time will tell if these efforts will bear fruit.
Photo: AP Photo/Lisa Poole