Citigroup president Jane Fraser looks poised to become a Wall Street bank’s first female chief. 52-year-old Jane Fraser could become the first female boss of a major Wall Street bank. Her promotion to the number-two job at Citi comes at a crucial juncture for the U.S. lender, whose performance has fallen behind those of rivals J.P. Morgan and Bank of America over the past few years.
The board faces increasing investor pressure for bolder strategic decisions at the group level and better performance at its consumer banking division, which Fraser now helms.
When Fraser started her career at McKinsey, she said she would only take the job if she could work directly for the consulting giant’s head of banking, recalled Lowell Bryan, the McKinsey banking boss. He was so impressed by the bold 26-year-old that he hired her.
Twenty-five years later, Fraser is being tipped for a far more significant first, after she was named President of Citigroup in October.
The gutsy streak Bryan recognized in Fraser stuck with her over the course of her career, according to colleagues. In the past 15 years at Citi, Fraser helped navigate the bank out of the financial crisis, reshaped its private bank after the 2012 sale of U.S. brokerage Smith Barney, and led its mortgage business through the gloomy days between 2013 and 2015.
In an era where banks have begun to focus more on its wealth management businesses, Fraser was ahead of the pack in making a mark. She increased revenue by more than a fifth from the first half of 2010 to the first half of 2013, plus overhauled the division’s leadership. Bold decisions included initiating a fee schedule that does not differentiate whether clients used Citi’s internal fund managers or outside firms, a move that steered the bank away from conflicts of interest that plagued rivals.
Fraser’s path to the top job is not without competition though. Potential contenders to succeed Mike Corbat include Citi’s longstanding investment bank boss Paco Ybarra, and chief financial officer Mark Mason, who has held operational and strategic roles.
Fraser’s operational experience will surely be put to question. «She lacks the volume of experience or running meaningful things at the bank,» said one contemporary.