, hammered recently by massive writedowns related to bad bets on securities tied to subprime mortgages, has named a 30-year veteran of the banking giant to oversee risk management at the firm.
In a statement after the closing bell, Citi said it had appointed Jorge A. Bermudez as chief risk officer, overseeing market, credit and operational risk and compliance. Bermudez, who replaces the retiring Dave Bushnell effective Dec. 31, will report directly to acting CEO Sir Win Bischoff.
The firm also formed an advisory board made of senior leaders from throughout the company to provide input on ways to strengthen the bank's risk management processes. Bermudez has made three initial appoints to the board: Old Lane Chief Risk Officer and Coo-COO Brian Leach; Head of Global Country Risk David Lipton; and Hamid Biglari, the head of the Investment Banking's Financial Institutions Group.
Bermudez, whose most recent job was CEO and president of Citi's Commercial Business Group in North America and Citibank Texas, has served in a variety of roles over his Citi career, including head of risk for the Corporate Banking Division in North America and the International Banking & Finance Group, as well as head of credit policy for Latin America. He also has served as CEO of Citi Latin America.
The company also expanded Citibank North America Chairman and CEOO Peter Knitzer's oversight to include the bank's Commercial Business Group.