Citigroup splits energy, power in i-bank shuffle

Citigroup Inc, the third-largest US bank, reorganised its investment banking operation after the division suffered through slumping revenue and a series of personnel changes last year.

Investment banking chief Raymond McGuire split the energy, power and chemicals (EPC) group, with energy and power each becoming free-standing operations, according to an internal memo. The chemicals unit will be folded into the existing industrial investment team, according to the memo, whose authenticity was confirmed by spokesman Mark Costiglio.

Joe Sauvage and Nick McKee were promoted to head the new global power team, while Stephen Trauber, a former top UBS AG banker who joined New York-based Citigroup last year, will lead the energy team, according to the memo.

“Our EPC franchise will be reorganised to better reflect the strategic importance of the individual businesses,” McGuire wrote. The group lost co-head Julian Mylchreest to Bank of America Corp last year. Another co-head, Peter Tague, moved into a strategy role in November. McGuire’s unit, which advises on mergers and acquisitions and underwrites equity and debt, reported 2010 revenue of $3.83 billion, a 20 per cent drop.

McGuire also named Mark Shafir to become co-head of global technology, media and telecom investment banking, serving alongside Ben Druskin. Shafir retains his position as global head of M&A. He joined Citigroup from Lehman Brothers Holdings Inc in September 2008. Ex-Credit Suisse banker Ketan Mehta would become head of M&A in the technology, media and telecom group.