Weill stepping aside at Citigroup

CITIGROUP heralded the end of an era today, saying legendary chief executive Sanford Weill would move aside from day-to-day operations next January.

The world's biggest financial services firm will be run by a two-man team of Charles Prince and Robert Willumstad.

Weill, a ruthless visionary who created America's first financial behemoth, will remain as chairman until 2006 but his role will be largely advisory and he is ending his reign of control at the giant he built with the then controversial merger of Travelers Group and Citibank in 1998.

The change comes after a tough year for Weill, forced to withdraw his nomination to the New York Stock Exchange board after regulators complained about the impropriety given Citigroup's recent settlement in a tainted research scandal that rocked Wall Street.

Prince, 53, who becomes chief executive, is a veteran of 23 years with Citigroup, was the bank's top lawyer and troubleshooter before heading its investment banking arm last year, then called Salomon Smith Barney. He shot into the public gaze when he was grilled by the US Senate committee investigating the collapse of energy trader Enron.

He has helped spearhead the bank's defence against a barrage of legal claims. Last year, he got a 30% pay rise to $7.8m. New chief operating officer Willumstad, 57, has led Citigroup's consumer business, including credit cards and retail banking.

JP Morgan Chase also unveiled a raft of senior management changes, creating a new office of the Chairman that will include chief executive William Harrison and two vice chairmen - investment bank head David Coulter and Don Layton, who runs Chase financial services and retail banking.