Poaching Viswas may be costly.

Citi's appointment of Vis Raghavan as head of banking is seen as an attempt to win market share while controlling costs. The cost of replacing Raghavan's JPMorgan stock options and providing incentives to move will not be disclosed, but it is expected to be significant given Raghavan's strong track record. However, there are hidden costs associated with reviving an underperforming banking franchise, such as the expense of hiring new managers and the potential impact on morale for existing employees. Raghavan will also need to carefully manage his relationship with Andrew Morton, the head of Citi's markets business. Additionally, Citi faces challenges in building market share in prime broking, and there may be tension between the markets and banking groups. Other banks, such as Deutsche Bank, are also trying to rebuild market share, but there are concerns about the potential hidden costs and assumptions about cost management and revenue growth. Overall, Citi's restructuring efforts are aimed at identifying and managing the hidden costs of investment banking growth. [Extracted from the article]

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