Citigroup to Form Unit for Research, Brokerage

Citigroup Inc., which has been at the center of government probes into alleged Wall Street misconduct, will create a unit to house its stock research and retail brokerage operations and has hired a well-respected executive to run the division.

The surprise move is aimed at eliminating the potential conflicts of interest that have sparked multiple government investigations of Wall Street’s practices in the late 1990s, Citigroup said.

The unit, which will include more than 300 analysts and 12,500 brokers, will be headed by Sallie L. Krawcheck, a onetime stock analyst who had been running Sanford C. Bernstein & Co., a highly regarded independent research firm.

Krawcheck, 37, will report to Sanford Weill, Citigroup’s chief executive.