15 Years After Big Merger Citi Still Has Legacy IT Issues

Sandy Weill

To IT, or not to IT.

Reuters reports that when Vikram Pandit was abruptly ousted as Citigroup's CEO late last year, senior bank employees speculated for weeks about who would follow him out the door.

Chief Operating Officer John Havens had already left with Pandit, and the employees bet the new CEO, Michael Corbat, would push out other Pandit loyalists. High on their list was Don Callahan, who headed operations and technology.

But when Corbat named his new team in January, he kept Callahan, albeit in a reduced role. People familiar with the matter said Callahan survived because he oversees an effort critical to both Corbat and bank regulators - simplifying and standardizing thousands of Citigroup's information technology systems. The process, which ramped up in the aftermath of the financial crisis, will take at least two more years to complete, they said.

Corbat's choice highlights how some 15 years after Sandy Weill merged Travelers Group and Citicorp to create Citigroup, the bank is still trying to integrate all its operations. For example, it still uses different account opening procedures and systems in different countries.

Hit the link below to access the complete Reuters article:

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image: © David Shankbone

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