Citigroup , under pressure to sever relationships between investment banking and research operations, said today it is would split off its equity research and private client brokerage units.
New York-based Citigroup said the new firm, to be named Smith Barney, will be led by Ms Sallie Krawcheck, the chief executive of stock research firm SanfordBernstein.
The move represents an aggressive attempt by Citigroup to get ahead of a broad coalition of regulators currently seeking structural change on Wall Street, and is consistent with chief executive Mr Sanford Weill's stated desire to quickly move toward a comprehensive resolution of perceived conflicts of interest.
The new unit will include Citigroup's global private client group, which employs more than 12,500 brokers, as well as the firm'sstock research operations.
Citigroup is the world's largest financial services firm, with operations in more than 100 countries.