By Rob Copeland And Christina Rexrode
Citigroup Inc. is filling its long-vacant position as global
head of prime finance with an executive from UBS AG.
Adam Herrmann, most recently global co-head of equity finance at
UBS, will start in June at Citigroup's London offices in the role,
which had been empty since David Murphy left in September. He will
report to Okan Pekin, Citi's global head of investor services, and
eventually move to New York.
A Citigroup spokesman confirmed the appointment. A UBS spokesman
didn't have an immediate comment and Mr. Herrmann couldn't be
reached.
Prime brokerage includes the lucrative practice of executing and
financing trades for hedge funds and is a closely-watched function
on Wall Street. But since the financial crisis, new regulations on
the use of bank capital have crimped the business. Banks including
Citigroup and Goldman Sachs Group Inc. have cut some of their
less-profitable clients of late.
Still, it remains a highly-competitive enterprise, in part
because prime brokerage clients often use other bank services like
private wealth management.
Jenny Strasburg contributed to this article.
Write to Rob Copeland at rob.copeland@wsj.com and Christina
Rexrode at christina.rexrode@wsj.com
Access Investor Kit for Citigroup, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US1729674242
Subscribe to WSJ: http://online.wsj.com?mod=djnwires