Citi’s probe into Sieg’s alleged bullying ‘did not – Business News
Citigroup’s inside probe into star wealth govt Andy Sieg has come beneath fire after it emerged that investigators didn’t query a number of of the ladies who accused him of bullying and discrimination — even because the bank stood by its high-profile recruit.
The inquiry, led by powerhouse law firm Paul Weiss, was launched this summer time after a string of complaints alleged Sieg humiliated subordinates, berated colleagues in public conferences and drove senior girls from the bank’s wealth management division.
Citigroup employed the firm after a number of executives, together with longtime personal banking head Ida Liu, raised considerations about Sieg’s habits, in accordance with Bloomberg News.
Citigroup’s wealth boss Andy Sieg is beneath scrutiny after an inside probe into his alleged bullying and intimidation didn’t query a number of of the ladies who complained about him. Getty Images
Sieg, 58, has denied the accusations, calling experiences of his alleged tirades “not accurate” in an August interview with Fox Business anchor Maria Bartiromo.
But 5 people acquainted with the matter informed the Financial Times that Paul Weiss by no means interviewed Liu, who resigned in January after clashing with Sieg, or Naz Vahid, a 38-year Citi veteran who left final 12 months after submitting complaints with the bank’s human sources division.
Bloomberg beforehand reported that Sieg berated staffers as “pathetic,” pounded on tables and diminished a managing director to tears during conferences.
After Liu’s departure, he eradicated her function completely and put in 4 male regional co-heads.
Another govt, Kristen Bitterly, was additionally mentioned to have confronted repeated outbursts that prompted HR complaints.
Linda Friedman, founding associate of employee-rights law firm Stowell & Friedman, mentioned she represents three different former Citi staff who raised considerations about bullying and gender discrimination however weren’t contacted by investigators.
Ida Liu, longtime head of Citi Private Bank, left in January after clashing with Sieg and was by no means interviewed by investigators, in accordance with the Financial Times. Getty Images
Friedman criticized Citi’s resolution to have Paul Weiss head the probe on condition that the bank has had a longstanding relationship with the law firm.
Paul Weiss, which has constructed a popularity as one of Wall Street’s strongest company legal advisers, has long represented Citi in main issues, together with mortgage-backed securities litigation stemming from the 2008 financial disaster and a separate Securities and Exchange Commission fraud investigation.
It additionally defended Citi’s former Mexican retail arm, Banamex, in anti–money laundering probes.
“You want to make sure the law firm doing the investigating is exercising independent judgment,” Friedman informed FT.
“Either you defend or you investigate. You can’t do both.”
When reached by FT, Citi declined to debate the specifics of the probe however informed the publication that it handles “all internal complaints appropriately by conducting unbiased, thorough, and complete investigations.”
Naz Vahid, a 38-year Citigroup veteran, resigned final 12 months after submitting complaints about Sieg’s habits that weren’t reviewed within the Paul Weiss probe. Courtesy of CIti
The bank added in a assertion that it’s “committed to a workplace where everyone is treated fairly and has equal opportunity to succeed.”
Citi accused Friedman of mounting “a simultaneous, ongoing campaign to leverage the media to help her case,” saying it might reply “through the appropriate legal venue.”
The firm’s probe, which was ordered by Citigroup’s human sources chief, Sara Wechter, adopted experiences that Sieg’s alleged mood and management type had sparked turmoil inside the bank’s wealth division.
Anonymous letters despatched to board chair John Dugan detailed allegations of intimidation and abusive conduct relationship back to Sieg’s time at Bank of America’s Merrill Lynch, the place he ran wealth management earlier than becoming a member of Citi in 2023.
The probe wrapped up in July after interviewing more than a dozen witnesses.
Citi has refused to release its findings however reaffirmed Sieg’s standing, praising him as a “highly respected leader” who has “transformed” the wealth business.
Linda Friedman, founding associate at Stowell & Friedman, mentioned she represents three former Citi staff who raised discrimination considerations however weren’t contacted by investigators. Stowell & Friedman, Ltd.
Under Sieg’s management, Citi’s wealth arm reported file second-quarter income of $2.17 billion and helped raise the bank’s stock 40% this 12 months.
CEO Jane Fraser, who personally recruited Sieg from Merrill Lynch at her Connecticut home, has continued to back him, describing him as a “hard-charging leader” who revitalized a lagging business unit.
Fraser herself was awarded a $25 million retention bonus final week, with the board citing her “extraordinary leadership” and “actions to build a strong executive team.”
Sieg, who sits on Citi’s 18-member govt management group and is considered as a potential successor to Fraser, has maintained that his management type displays the calls for of a sweeping restructuring effort — not abuse.
Kristen Bitterly, one other senior wealth govt, allegedly confronted repeated outbursts from Sieg that prompted HR complaints. Linkedin/Kristen Bitterly Michell
“Change is hard,” he mentioned in August. “And we’ve been driving a lot of change across Citi and in our wealth business.”
Citi has not mentioned whether or not it plans to make the Paul Weiss findings public.
Liu, Vahid and Sieg all declined to remark to the Financial Times.
The Post has sought remark from Citi, Paul Weiss, Liu, Vahid, Sieg, Bitterly and Friedman.
