Citi CEO Fraser Defends Wealth Head Sieg Amid Internal Probe

Citi CEO Jane Fraser is "comfortable" with an internal probe into the bank's wealth head, Andy Sieg. The investigation was conducted by law firm Paul Weiss and is now complete. Fraser praised Sieg's efforts to transform the wealth business and defended Citi's flexible work policies. She also expressed optimism about the US economy, stating that she does not expect a recession.

Citigroup Inc. Chief Executive Officer Jane Fraser expressed her comfort with the findings of an internal probe into the bank's wealth executive, Andy Sieg. The investigation, conducted by law firm Paul Weiss, is now complete. Fraser praised Sieg's efforts to transform the wealth business and defended Citi's flexible work policies.

“We looked into the matter seriously and I’m very comfortable with the way we came out,” Fraser told Bloomberg TV in an interview. Fraser also emphasized that Sieg’s appointment was part of her strategy to overhaul the bank, and she is pleased with the team’s achievements in the wealth division Citi CEO Fraser ‘Comfortable’ With Probe Into Wealth Head Sieg^[1].

Citigroup earlier this year hired law firm Paul Weiss to investigate complaints about the behavior of its wealth-management chief, Andy Sieg. The complaints alleged intimidation and unfair treatment Citi CEO Fraser ‘Comfortable’ With Probe Into Wealth Head Sieg^[1]. Fraser defended Citi’s flexible work policies, stating, “not all jobs need to be in five days a week,” which contrasts with many of the bank’s Wall Street peers enforcing stricter return-to-office mandates Citi CEO Fraser ‘Comfortable’ With Probe Into Wealth Head Sieg^[1].

In a significant strategic move, Citigroup is outsourcing $80 billion of client assets to BlackRock Inc. This partnership will allow Citigroup to focus on the advisory side of its wealth business, as it does not have an in-house asset management platform BlackRock to Manage $80 Billion of Citi's Wealth Assets^[2]. Andy Sieg, head of Citigroup's wealth business, stated, "We are not in the position to take this platform and make it twice as big ourselves — not nearly as strong a position as we will be working with BlackRock" BlackRock to Manage $80 Billion of Citi's Wealth Assets^[2].

As part of the agreement, BlackRock will receive management fees, while Citigroup will keep fees for advising clients. The new arrangement is expected to be completed by year-end BlackRock to Manage $80 Billion of Citi's Wealth Assets^[2]. This strategic move marks a key step in streamlining Citigroup's wealth business, which has turned its focus to the mass affluent sector BlackRock to Manage $80 Billion of Citi's Wealth Assets^[2].

Fraser also struck an upbeat note on the US economy, stating that she does not expect a recession. The bank’s wider turnaround plan is entering its final stages, signaling a positive outlook for Citigroup's future Citi CEO Fraser ‘Comfortable’ With Probe Into Wealth Head Sieg^[1].