By Ken Sweet
Citigroup's Jane Fraser will become the first woman to ever lead a Wall Street bank when she succeeds CEO Michael Corbat in February.
The New York bank announced the succession Thursday.
Fraser is currently head of Citi's global consumer banking division, a major part of the bank that oversees checking and savings accounts but also Citi's massive credit card business. She's been with Citi for 16 years and had recently been tasked with leading the clean up of the bank's troubled Latin American banking business.
Fraser will be the first woman to lead one of Wall Street's big six banks, a major accomplishment in an industry long dominated by men. JPMorgan Chase CEO Jamie Dimon has had two women as his second-in-command for years — Marianne Lake and Jennifer Piepszak — but shows no signs of stepping down.
In a congressional hearing last year, the CEOs of the Wall Street banks were asked whether they expected to be succeeded by a woman in their roles, and no man raised his hand at the time. Fraser will be one of only 32 female CEOs running a company in the S&P 500, according to Equilar.
When Fraser does take over for Corbat in February, it's almost certain the U.S. and global economies will still be dealing with the impact of the coronavirus pandemic.
Since early this year, banks have set aside billions to cover potential loan losses as businesses and customers alike have fallen behind on payments. With a vaccine still months away at least and the U.S. economy in a deep recession, the problems for borrowers are expected only to get worse as the country heads into the fall and winter.
Corbat led Citigroup for eight years, rebuilding the bank after it nearly collapsed during the Great Recession and 2008 financial crisis. The federal government had to step in to buy a stake in Citi to keep it afloat, and the bank had some of the most toxic assets on its books of all the major banks during this time.
Corbat turned Citi into a much smaller and stable entity, focusing on its credit card businesses and its international banking franchise. It was able to pass the Federal Reserve's "stress tests," which test a bank's resiliency, and is considered a much healthier institution now than it ever was before the financial crisis.
Citi declined to make Fraser available for interviews. In a prepared statement, Fraser said, "Citi is an incredible institution with a proud history and a bright future. I am excited to join with my colleagues in writing the next chapter."
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
At the core of the ongoing government shutdown is a fight over the decision to end subsidies that let some 12 million Americans get health coverage.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
