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Citigroup Takes Picks from Lehman Brothers

Citigroup Inc. announced it had fortified its Financial Institutions Group by hiring six investment bankers from Lehman Brothers Holdings Inc. The move was carried out in anticipation of increased mergers-and-acquisitions activities of Citigroup. Heading the FIG "newbies" is Henry Michaels, a 20-year veteran of Lehman and Merrill Lynch and Co. The others include John Roddy, a managing director, Jerry Wiant, a director, Sean Burke, a vice president, and John Minor and Donald Lacey, associates.

"We think that`s where the activity is going to be," the global head of Citigroup`s financial institutions group, Hamid Biglari, said. He cited the possibility of large U.S. and European banks buying mid-cap banks and thrifts, and more mergers between similarly-sized institutions. A Citigroup spokeswoman said the bankers will start work at Citigroup in a month, after a 30 day "garden leave" to follow the non-compete provisions in their contracts. Henry Michaels is set to be co-head of Citigroup`s diversified FIG with Citigroup banker Craig Stine.

The FIG will answer to the global head of Citigroup`s FIG, Biglari. The Lehman bankers bring their relationships with thrifts and mid-sized banks in the U.S to the company, while Michaels is experienced in several recent high-profile transactions that include Hudson City Bancorp Incorporated`s $4 billion recapitalization, and Charter One Financial Group`s $10 billion sale to the Royal Bank of Scotland Group.