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Citigroup Names Corbat CEO of 'Bad Bank'

Citigroup permanently named Mike Corbat the CEO of Citi Holdings, its 'bad bank' entity.



has permanently named Mike Corbat as the CEO of Citi Holdings, its "bad bank" entity.

Citi Holdings is comprised of the battered company's brokerage and asset management arm, consumer finance and a special asset pool. Corbat had previously been the entity's interim CEO when it announced it was splitting the company in January.

Corbat will work closely with Citi Holdings chairman Gary Crittenden, to "thoughtfully evaluate and set the strategic course for these businesses, while tightly managing risks and losses and maximizing the value of these assets," the company said.


, formally the holding company's CFO, was named last month to his new role.


, most recently was the company's head of wealth management and has served various executive positions at the firm for approximately 25 years. He is also in charge of the brokerage and asset management unit, which includes the Smith Barney joint venture between

Morgan Stanley


and Citi.

Citicorp, the so-called "good bank," is comprised of the company's global institutional business and continuing consumer banking operations. It is run by John Havens, Citi's CEO of institutional clients group and head of its alternative investments arm.

Separately Citi named Eric Aboaf as Treasurer of the company. He will report to Citi's new CFO Edward 'Ned' Kelly.

Aboaf will manage Citi's balance sheet and will be responsible for "ensuring strong liquidity, asset and liability management and optimization of our capital structure," Citi said.

He will work closely with both Citicorp and Citi Holdings to support their funding needs and optimize capital deployment. He will also closely with external regulators, rating agencies and communicate with Citi's fixed income investor, the firm said.

Aboaf was most recently the CFO of Citi's institutional clients group. He has held the position as the top financial officer for Citi's global consumer group as well. He joined Citi in 2003.

Shares were down 5.3% to $2.70 after the market opened Monday.