NEW YORK, Jan 27, 2026, 15:00 (EST) — Regular session
- Citigroup shares slipped roughly 0.2% during afternoon trading
- Citi shakes up leadership in corporate and investment banking to boost deal fees
- Traders are focused on Wednesday’s Fed decision, while a fresh lawsuit ramps up headline risk
Citigroup Inc (NYSE:C) shook up its corporate and investment banking ranks Tuesday, appointing Jason Rekate and John Chirico as global chairs. Marcelo Marangon and Kaleem Rizvi were named co-heads of corporate banking, according to a memo seen by Reuters. Shares slipped 0.2% to $114.63 in afternoon trading. (Reuters)
The moves come as CEO Jane Fraser pushes to boost results in the fee-driven businesses that generate income for Wall Street banks. Corporate and investment banking is the division responsible for fees from merger advice and stock and bond offerings.
Since Viswas Raghavan arrived from JPMorgan in 2024, Citi has been ramping up hiring and pushing bankers to collaborate more across business lines to secure mandates. The market has responded positively, sending the stock sharply higher in 2025.
Big U.S. bank stocks showed a mixed picture. JPMorgan dipped around 0.5%, whereas Bank of America inched up 0.3% and Wells Fargo gained close to 0.9%.
Marangon, the bank’s chief country officer in Brazil, is set to relocate to New York to lead corporate banking across the Americas. Rizvi, meanwhile, will leave Asia for London to manage daily coverage spanning the UK, Europe, the Middle East, Africa, and Asia, according to the memo.
Equity investors are left wondering if the revamped lineup can translate improved coverage into more consistent underwriting and advisory fees. These revenues tend to come in sporadic bursts, and the battle for mandates remains fierce.
Separately, former managing director Julia Carreon filed a lawsuit against Citi in Manhattan federal court, alleging she was forced out after sexual harassment by Andy Sieg, head of wealth management. Citigroup responded with a statement: “This lawsuit has absolutely no merit and we will demonstrate that through the legal process.” (Reuters)
Litigation news and ongoing uncertainty around deals can shift sentiment fast, especially after a strong rally in a stock. Simply put, investment banking revenue hinges on companies choosing to make moves—something that often stalls when markets get shaky.
Bank stocks are on edge ahead of the Federal Reserve’s two-day meeting wrapping up Wednesday, where rates are widely expected to stay put. Michael Pearce, chief U.S. economist at Oxford Economics, described the short-term outlook as “benign,” though he warned that developments beyond the Fed could still disrupt the rate trajectory. (Reuters)
The Fed’s policy statement is set for 2 p.m. ET on Jan. 28, with Chair Jerome Powell’s press conference scheduled shortly after at 2:30 p.m., according to the central bank’s calendar. (Federal Reserve)
Citi has its first-quarter earnings call set for April 14, followed by an investor day on May 7, according to the bank’s investor site. (Citi)
Traders are viewing Tuesday’s management shake-up as a move aimed at long-term fee growth, while the court case is seen mainly as a side issue. Attention now turns to Wednesday’s Fed decision and the signals Powell sends about rates.
