Citi is betting big on high-profile executives to turn things around
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Hello! There's donating to charity, and then there is gifting $1 billion to a Bronx medical school to cover students' tuition in perpetuity.
In today's big story, we're looking at the reshuffling of top executives at two of the biggest US banks.
What's on deck
Markets: All the best bits from Warren Buffett's letter to Berkshire Hathaway shareholders.
Tech: A Google exec addresses the Gemini debacle.
Business: Microsoft's ex-VP of HR explains how long you should stay at a job.
But first, executives on the move!
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The big story
Same face, new place
April showers bring May flowers. But on Wall Street, January bonuses bring February job changes.
The finance industry commonly sees a bit of turnover after bonuses clear. But this year, the industry saw an earthquake instead of just a shake-up.
Viswas Raghavan, JPMorgan's top dealmaker, has joined Citi as its head of banking and executive vice chair, reporting directly to CEO Jane Fraser. The move is a big deal, but even more shocking since Raghavan was just promoted to be the sole head of JPMorgan's deals business.
His departure forced JPMorgan to do some reshuffling of its own, tapping Filippo Gori and Doug Petno to run a group that includes the commercial, corporate, and investment bank.
Business Insider's Reed Alexander has a rundown of it all, including background on Raghavan, Gori, and Petno.
It'll be quite the switch for Raghavan.
JPMorgan is one of the top investment banks on the Street — even considered the top dealmaker at one point last year — whereas Citi is much further down the totem pole.
That's why Fraser brought Raghavan into the fold amid her massive overhaul of the struggling bank. It's similar to when Fraser poached Merrill Lynch vet Andy Sieg to lead Citi's global wealth management.
But it's one thing to lead when you're on top. It's another to claw your way to the top.
3 things in markets
1. Everything you want to know about Warren Buffett's annual letter but were too afraid to ask. Interesting tidbits from the note include Berkshire Hathaway's return under Buffett (4,400,000%) and the amount of interest and other investment income it collected in 2023 ($6.1 billion). The company is now worth almost $1 trillion.
2. Rates cuts?! We don't need any stinkin' rate cuts. Since high interest rates aren't stopping stocks from reaching record highs, cuts might not come at all this year, according to analyst Jim Bianco. Market vet Ed Yardeni said interest rates are actually in a sweet spot for stocks, similar to the late '90s.
3. Bitcoin is kind of boring these days. The volatile price swings that made the cryptocurrency attractive for some are in the rearview, according to DataTrek Research. The entrance of traditional Wall Street players has led to a much calmer asset, and that could push people back into stocks.
3 things in tech
1. Google's AI image generator could be back in "a couple of weeks." Gemini was paused last week after users found the image generator would produce historically inaccurate — and "woke" — results. DeepMind CEO Demis Hassabis said the company hopes to have the model back online "in very short order."
2. For one Rivian employee, being laid off was a relief. Having started at Rivian in 2019, this employee survived three rounds of layoffs — but was ultimately let go last Thursday. They told BI they're ready to move on from the frustration of seemingly constant layoffs.
3. Android users may finally be the cool texters. Long shunned for their green text bubbles, people with Androids could gain some cred thanks to new AI features. Google announced its Message app will have access to Gemini, and users can turn their photos into custom emojis.
3 things in business
1. We're doing DEI wrong. A former chief diversity officer says that while DEI is crucial for America's future, it isn't working. To make it work, DEI must be part of a strategy that's critical to a company's growth and performance.
2. Job hunting? You probably still need a college degree. Many employers say they're moving towards "skills-based hiring," focusing on what a candidate can do, not what they've studied. Still, many companies are looking at candidates' education — even if they claim not to be.
3. How long should you spend at a job? It used to be that employees should stay at a job for at least three years, if not five. Now, some recruiters see long tenures as red flags. Microsoft's ex-VP of HR explains where to find the happy medium.
In other news
Commercial real estate services firm restructures debt after default as industry's problems widen.
Meta aims to reveal and demo Orion, its first true AR glasses, during its fall developer conference.
The FAA investigated Boeing's safety culture — and what they found wasn't good.
I'm an employment lawyer. Here are the first 3 questions to ask HR if you're laid off or fired.
What's happening today
Today's earnings: eBay, Lowe's, and other companies are reporting.
The Insider Today team
Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, editor, in London.
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