Citigroup moves to strengthen risk management

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NEW YORK, Nov 16 (Reuters) Citigroup, which has said it might have to write down billion this quarter, on Friday replaced its chief risk officer and created a committee of executives from across the company to advise on ways of beefing up its risk management.

The largest U.S. bank said that Dave Bushnell, chief administrative officer and chief risk officer, will retire after 22 years at the company. Bushnell, 53, will retire effective Dec. 31, and will continue to advise the bank as a consultant.

Citigroup appointed Jorge Bermudez as its new chief risk officer, with responsibility for market, credit and operational risk, effective immediately.

In his new role, Bermudez will also be responsible for compliance around the world for Citigroup and all of its subsidiaries.

Bermudez, 56, will report to acting chief executive Win Bischoff. During his 30 years at Citigroup, Bermudez has served in a range of senior roles, most recently as CEO of Citi's commercial business group in North America and Citibank Texas.

''Jorge brings extensive experience in managing risk and a deep understanding of our complex businesses,' said Bischoff.

LOSSES Bermudez has appointed three initial members to Citigroup's new risk advisory committee.

They are Brian Leach, co-COO for hedge fund Old Lane; David Lipton, head of global country risk; and Hamid Biglari, head of the investment banking unit's financial institutions group.

Friday's moves follow the resignation of Citigroup chief executive Charles Prince on Nov. 4.

That day, Citigroup said it might write off billion this quarter for subprime mortgages, potentially eliminating one-third of the bank's annual profit.

Citi's third-quarter write-downs totaled about .8 billion, including those for credit and trading losses.


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