Bank's wealth-management group re-aligned to address needs of wealth tiers. Citigroup is re-vamping its Global Wealth Management (GWM) division in the interests of moving "from a 'silo-first' to a 'client-first' organization," Sallie Krawcheck, CEO of writes in a memorandum to Citi staffers. As a result, bits of Smith Barney and Citigroup Private Bank will be re-oriented to serve specific wealth segments.

Rumors have been going around that Citi, hit hard by sub-prime-related woes, might sell its retail brokerage unit Smith Barney. This re-org may put an end to such talk.

Here's the whole memo.

From: Sallie KrawcheckSent: Monday, March 03, 2008 12:02 PMSubject: GWM U.S. Organizational Announcement

Our goal is to be the number one wealth management organization in the world. I want to share with you a new business and leadership structure for Global Wealth Management (GWM) in the U.S. that will help us advance this goal and build on the momentum in our business.

Starting today, we will move from a "silo-first" to a "client-first" organization, leveraging the expertise and capabilities across Smith Barney, the Private Bank and Citi to more effectively serve our different client segments. While we've made progress in delivering expanded products and services to our clients, this reorganization will allow us to sharpen our focus around our client orientation in a manner that is meaningfully better than our competitors.

Our client-focused approach involves reorganizing GWM around (1) a single client-facing organization and (2) four key client segments, which include our ultra high net worth, high net worth, emerging affluent and institutional service offerings. In doing this, we will drive to:

Seamlessly deliver and better align Citi's global resources with the distinct needs of each client segment Develop a distinct strategy for each client segment Build the industry's preeminent ultra high net worth platform Streamline our organization for greater operational efficiency and future growth

Our new client-first business model in the U.S. will look as follows:

GWM Client Facing Organization - Charlie Johnston. Charlie will become President of GWM for the U.S. and Canada, overseeing our Smith Barney and Private Bank client-facing organizations, including Financial Advisors and Private Bankers. Divisional Directors will continue to report directly to Charlie. Global Market Managers will continue to report into the Private Bank, as well as jointly to the Divisional Directors. Charlie will look to the GWM Divisional Directors and GWM Market Managers to partner closely to increase cross-business referrals and deliver the capabilities of GWM and Citi to our advisors, bankers and clients. Charlie will continue to report to me in his new role. GWM Ultra High Net Worth Client Segment - John Longley. John will continue to lead the Citi Private Bank and will take on additional responsibility for our ultra high net worth client segment, leveraging the resources of the Private Bank and Smith Barney's Family Office as we create nothing less than the leading ultra high net worth offering in the industry. I have asked John to lead a group of our top bankers and advisors to create this important platform, starting immediately. They will meet regularly over the next couple of months to advise on the best ways to provide our clients with the depth and quality of products and services that only Citi can offer. John will continue to report to me. Charlie's leadership team will include Bob Matthews, who will take on a new role as head of Business Development. Bob will work closely with our segment heads and product partners to drive our key initiatives, and have responsibility for sales, recruiting, training and marketing across GWM in the U.S. Under the new structure, our product partners in the regions will continue to report into their respective product heads and will now also report to the Divisional Director for the area they cover through a newly created position in each division - the Divisional Development Director. The Divisional Development Director will report jointly to Bob and the Divisional Directors, and work to drive firm initiatives and best leverage our resources across each division. Reporting to Bob, Lyn Hensle-Hirsch will continue to oversee recruiting and training and Barbara Glasser will continue to oversee marketing. Charlie's team will also include Kunal Kamlani, who will take on a new role as Chief Operating Officer of our client-facing organization and Kevin McManus, who will continue as Director of Field Management. John's leadership team will include: Mark Connolly, head of Lending; Dave Corley, Chief Operating Officer; Rich Ditizio, head of the ultra high net worth Bankers; Dan FitzPatrick, head of Citi Trust; Lori Heinel, head of Investments; Deborah Larrison, head of Citi Capital Strategies; Kevin Morrison, head of Capital Markets; Ed Orazem, head of Citi Family Office; and Lester Pataki, head of the Law Firm Group. GWM High Net Worth Client Segment - Craig Pfeiffer. Craig will become head of our high net worth client service offering in the U.S., reporting to me. In addition to his responsibilities for our high net worth strategy, this role includes oversight of our retirement market initiative and banking services, as well as our wealth planning centers and client experience initiatives. Craig will continue to oversee our relationship with the Global Consumer Group, as we look to expand our OneCiti opportunities for clients. GWM Emerging Affluent Client Segment - Andy Sieg. Andy will continue as the head of Financial Life Services, and now report to me, overseeing the build-out of our emerging affluent client service offering in the U.S. This remains one of the fastest growing client segments, and Andy will lead our efforts to further capture and serve this market, while also leveraging Citi's competitive advantages, including our partnership in Citibank locations. GWM Institutional Client Segment. In the coming weeks, we expect to name a head of our GWM Institutional businesses, who will report to me. This person will oversee our 401k, IIG, IFG, Corporate Client Group and Executive Financial Services businesses. In the interim, these groups will continue to report to their current management. Paul Hatch will continue as Head of GWM Investments, reporting to me, and now oversee all of the GWM Investment products and services businesses. Paul will bring together our industry-leading investment research businesses and teams, including those under GWM Chief Investment Officer Jeff Applegate and Global Director of Citi Investment Research Andrew Pitt. This powerful combination will centralize the best of our investment opportunities and ideas for our advisors and bankers to bring to clients. Mark Mason will continue as Chief Financial Officer and head of Strategy and Mergers and Acquisitions, reporting to me. Art Tildesley will join GWM as Chief Administrative Officer, and report directly to me. Art has been a valuable partner to GWM as Head of Citi Investor Relations for the last four years. In his new role with us, Art will oversee: GWM Legal, led by Mike Sharp; GWM Compliance, led by Cindy Armine; GWM Operations & Technology, led by Sheree Stomberg; GWM Risk Management, led by Tom Schwartz; GWM Human Resources, led by Robin Leopold; GWM Corporate Affairs, led by Susan Thomson; and GWM Real Estate, led by Maria Benlian. Deepak Sharma will continue as CEO of GWM International, reporting to me, and oversee our GWM international businesses in Asia, LATAM and EMEA. He will also take on added responsibility for Global Wealth Structuring and Structured Lending for the international regions.

The goal of the new GWM business structure is to provide a differentiated and leading client experience by pulling together our capabilities in a way that only Citi can. As part of this reorganization, I will charge the management team with streamlining the organization and removing costs that do not directly benefit the client. These objectives are in line with Vikram Pandit's key priorities for Citi, as we all move towards building a more productive and client-focused organization.

Please join me in congratulating our colleagues on their new posts. Together, my new leadership team and I look forward to keeping you posted on our progress.

Citi put its private bank, Smith Barney and its investment-research unit under the GWM banner late in 2005. -FWR