Shakeup In Citigroup’s Consumer Banking Arm Announced Friday


Medina-Mora out at Citigroup

A not-entirely-unexpected shake up has been announced in Citigroup’s consumer banking division. According to a February 20th article in the New York Times, Manuel Medina-Mora, the head of Citigroup’s consumer operations will be retiring as of June 1st. The too big to fail bank announced the impending retirement of the senior exec in a staff memo earlier this week.

Of note, Medina-Mora is also employed as Citigroup co-president, and will continue on in his capacity as chairman of the bank’s Mexican unit Banamex. 2014 was a tough year for Banamax, which suffered from scandals leading to criminal investigations in both the U.S. and Mexico as well as the firing of several senior execs.

The memo noted a replacement to Medina-Mora will be announced in the near future.

Jim O’Shaughnessy: Fear Signals Created By The Reptilian Brain

ValueWalk's Raul Panganiban interviews Jim O’Shaughnessy, Chairman, Co-chief Investment Officer, and Portfolio Manager at O’Shaughnessy Asset Management. In this part, Jim discusses the fear and emotional signals created by the reptilian brain. Q1 2020 hedge fund letters, conferences and more That's very cool. For the factor to try to seek the reason why it works, Read More

Citigroup staff memo praises

In the memo, Citigroup CEO Michael Corbat praised Medina-Mora for his role in turning the megabank’s mixture of retail banks all across the world into a cohesive global bank.

“The turnaround has been impressive,” Corbat noted.

However, Medina-Mora has faced criticism for his job supervising Banamex. Banamex has been highly profitable, but last year Citigroup disclosed that Banamex was the victim of a $400 million fraud by a Mexican oil services firm with a history of questionable business practices. According to knowledgeable sources, there was some discussion in management circles that Medina-Mora had been given too much freedom in running Banamex with not enough control from New York.

Regardless of the Banamex situation, Medina-Mora (who came to Citigroup when it bought Banamex back in 2001) is thought by many to be a highly influential deal maker in Mexico and throughout Latin America. He will remain with Citigroup as the non-executive chairman of Banamex.

Of interest, the staff memo said that Banamex CEO Ernesto Torres Cantu will not report to Medina-Mora, but directly to Corbat.