(Dec 22): HSBC Holdings Plc has hired former Citigroup Inc executive Ida Liu to run its global private banking business, according to people familiar with the matter.
Liu replaces Gabriel Castello, who was appointed interim chief executive officer of the wealth business late last year, when Annabel Spring stepped down as part of a management shake-up under group chief executive officer Georges Elhedery.
Liu will start in her new role in early January, the people said, asking not to be identified discussing non-public information. Castello will assume the role of vice-chairman of HSBC’s private bank, and will oversee the bank’s most valuable clients.
A representative for HSBC declined to comment.
The move comes as HSBC’s Swiss private bank is in the process of ending relationships with more than 1,000 wealthy Middle Eastern clients, including many with assets exceeding US$100 million (RM407.9 million). Bloomberg News has reported that the British lender is under the scrutiny of Swiss watchdog Finma, which previously found that HSBC’s private bank failed to carry out adequate due diligence on high-risk accounts held by politically exposed persons. Swiss federal prosecutors have also opened a probe into the division.
Liu was one of Citigroup’s most senior public faces until she left the bank in January after 18 years there. Early in her career, she was an investment banker and also worked for fashion designer Vivienne Tam before building a wealth practice at Citigroup catering to fashion and media billionaires and their families.
See also: The Asian boardroom reset: Why the CEO-chair relationship needs a new social compact
During her final four years at Citigroup, she was global head of private banking, which was heavily focused on clients in the US and Asia. Born and raised in California, Liu speaks fluent Chinese and Spanish, according to her LinkedIn profile.
Her departure from Citigroup followed tensions with Andy Sieg, the firm’s head of wealth, whom the bank stood by after hiring a law firm to investigate claims he mistreated employees including Liu. Jane Fraser, the bank’s chief executive, has stood by Sieg, who has since been handed greater responsibilities.
Uploaded by Magessan Varatharaja
