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Added information regarding new hires and Citigroup's closing stock price

NEW YORK (

TheStreet

) --

Citigroup

(C) - Get Citigroup Inc. Report

shares reversed course Tuesday along with the broader sector, a day after financial stocks experienced a sigh of relief following the Basel Committee's finalization of new international bank capital standards.

Citigroup shares closed down 5 cents, or 1.2% to $3.94. The stock is down 22% from its high in April, but still up 20% year-to-date.

The company has been making several mid-level management hires and changes. It said Tuesday that it had hired Jud Linville to beome CEO of Citi Cards, replacingi ts previous head Paul Galant. Linville joins Citi from

American Express

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, where he was president and CEO of its U.S. Consumer Services business.

Linville will run Citi`s North America branded cards business. He will report to Manuel Medina-Mora, Citi`s CEO of Consumer Banking for the Americas.

Galant will now oversee a new business formed by Citi, its Global Enterprise Payments business.

Citigroup announced on Monday that it is picking up a former

Wachovia

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executive to become president of its U.S. consumer and commercial banking group.

Citigroup said in a press release on Monday that Cecelia 'Cece' Stewart has been named as president of its U.S. consumer and commercial banking. Stewart will be in charge of overseeing Citi`s U.S.-based retail banking, personal banking and wealth management, commercial banking, and small business banking operations.

Citigroup also named Will Howle to become chief operating officer of the unit.

Stewart, 52, will report to Citi's CEO of Consumer Banking for the Americas, Manuel Medina-Mora, and sit on the bank's Global Consumer Banking Council. Stewart is expected to join in a few months, a spokeswoman said.

Wachovia, which became an acquisition target after the housing collapse reaped havoc in its popular Pick-a-Pay mortgage portfolio. It was acquired by

Wells Fargo

(WFC) - Get Wells Fargo & Company Report

at the end of 2008, after the San Francisco bank trumped Citigroup's offer for a portion of Wachovia. A heated legal battle ensued.

Most recently Stewart was president of

Morgan Stanley's

(MS) - Get Morgan Stanley Report

retail banking group and CEO at Morgan Stanley Private Bank, where she oversaw the development of all consumer, commercial and wealth management products and services.

Stewart held a number of senior banking positions at Wachovia. Her last position there was executive vice president and head of the retail and small business bank.

Howle was a managing director and head of national sales for Morgan Stanley`s Private Bank. He also served as COO of Wachovia's retail and small business segments.

In July, Medina-Mora announced a multi-year strategy to grow Citi`s North America Consumer Banking business. Citigroup's strategy includes "significantly" improving the customer experience across all of

Citi's consumer banking

businesses and focusing on customer segments and regions where the bank can create a competitive advantage, among other things.

Citi CFO John Gerspach said in an internal memo on Monday that the company was "very comfortable" with the

Basel III

targets.

"While details on risk-weighted assets are still forthcoming, the Basel III agreement answers important questions and begins to cerate needed certainty," Gerspach said in the memo. "We are very comfortable with these targets. We continue to execute our strategy and invest in our businesses to generate sustained profitability and growth."

At June 30, the bank's Tier-1 capital was 12%, and Tier-1 common equity was 9.7%.

"We support capital requirements that will increase the safety and soundness of the banking system and look forward to a good dialogue during the implementation period to make sure the rules support economic growth, fairness and innovation," Gerspach said.

Separately, Citigroup said on Monday that it believes the

$75 million settlement

with the

Securities and Exchange Commission

over allegations that it led misled investors about its exposure to subprime mortgages in 2007 was "fair, adequate, reasonable and appropriate," according to media reports. The bank is set to go to court regarding the settlement on September 24.

--Written by Laurie Kulikowski in New York.

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