Thomas W. Jones
and Peter Scaturro were among the three executives ousted from Citicorp in wake of the one month exile of the bank by Japanese regulators last month. Jones, 55, headed investment management at Citicorp and oversaw Saturn, 44, who ran private banking. While Cit has not commented on the matter (the firings were revealed in a memo to employees obtained by reporters), it appears that both Jones and Saturn lost their jobs because of problems in the Japanese private banking unit. Also ousted was Derrick Magna, 56, former head of Salomon Brothers, Citicorp vice chairman and the chairman of Citicorp International.
Last month Japanese regulators shuttered Citicorp's Japanese private bank after it allegedly failed to conduct proper checks for money laundering. They also claimed to uncover fraud at the retail banking unit.
Last week Charles Prince, CEO, vowed that he would take "strong action" in response to the allegations.
Jones had been a rising star at Citicorp after leaving TIAA-CREF in 1995 to join Sandy Weill at The Travelers. Travelers Group acquired Citicorp in 1997 to create Citicorp. He served as chairman and CEO of both Citicorp's Global Investment Management and Citicorp Asset Management divisions.
Robert Willumstad, Citicorp president and chief operating officer, will oversee the bank's asset management and the Travelers Life and Annuity businesses in wake of the firings. He will also head the private banking unit until November 5. At that time Todd Thomson, 43, head of the Smith Barney brokerage unit, will oversee the business.
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