Citi Pulled Prime Brokerage Job Offer After Receiving Complaints
Citigroup withdrew offer to add Joseph Genovese when executives received internal and external complaints about his past behavior.
(Bloomberg) -- Citigroup Inc. had secured a key hire in its push to rejuvenate a unit catering to hedge-fund clients. Then the firm changed its mind.
The New York-based lender withdrew an offer last year to add Joseph Genovese as head of sales for the Americas at its prime-brokerage unit when executives received internal and external complaints about his past behavior, including toward female colleagues, people with direct knowledge of the matter said. The concerns related to his time at Deutsche Bank AG, where he spent 15 years until leaving in late 2019, according to the people, who requested anonymity as details aren’t public.
Genovese denies any wrongdoing and is now pursuing an arbitration claim against Citigroup for “improperly rescinding” the job offer, according to a statement from his attorney, Guy Allen of law firm Westerman, Ball, Ederer, Miller, Zucker & Sharfstein LLP.
Citigroup intends to defend its decision, spokeswoman Danielle Romero-Apsilos said. “Citi had considered Mr. Genovese for employment but subsequently reconsidered,” she said, declining to comment on why bank officials pulled the hire.
Banks have stepped up scrutiny of potential hires as the industry works to improve diversity in its top ranks and shed a reputation as a boys’ club. Still, it’s rare for a firm to take back a job offer that has already been announced to other staff.
“At no time did Mr. Genovese do anything or take any action that would have warranted Citibank rescinding its agreement with Mr. Genovese,” Allen, his attorney, said in an emailed statement. “Citibank improperly rescinded the agreement. Therefore, Mr. Genovese is currently pursuing this matter in an arbitration pursuant to Citibank’s internal policies and procedures.”
Deutsche Exit
Genovese was head of sales for North America at Deutsche Bank’s prime unit, according to his LinkedIn profile. The division, which executes trades for lucrative hedge fund clients and lends them securities, was once one of the biggest on Wall Street. Yet it struggled as the German lender endured years of legal problems and restructurings, and BNP Paribas SA agreed in September to gradually take over the business as Deutsche Bank largely exited equities trading.
Around this time, executives at Citigroup’s prime business extended a job offer to Genovese and he accepted, the people said. Daniel Keegan and Okan Pekin, global co-heads of the equities division that houses Citigroup’s prime unit, were involved in canceling the hire after complaints came in, one of the people said.
Genovese declined to comment beyond his attorney’s statement. A spokesman for Deutsche Bank declined to comment.
To contact the reporters on this story: Melissa Karsh in New York at mkarsh@bloomberg.net;Donal Griffin in London at dgriffin10@bloomberg.net
To contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Daniel Taub, Michael J. Moore
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