Your Local Partner Worldwide. Boyden New York www.boyden.com 275 Madison Avenue www.boyden.com/newyork Suite 1500 New York, NY 10018 t) 1 212 949.9400 Citigroup Trading-Unit Head Carpenter Quits for Moore From Bloomberg — February 4, 2010 By BRADLEY KEOUN Feb. 4 (Bloomberg) -- Matthew Carpenter , head of a Citigroup Inc. unit that trades U.S. stocks using the bank’s own money, quit to join hedge fund Moore Capital Management LP amid concern the government may order banks to exit such businesses, people briefed on the matter said. Carpenter told the New York-based company he’s leaving this week along with his deputy, Matthew Newton , Citigroup spokesman Alex Samuelson said. The group produces about $100 million of annual revenue, or 3 percent of the bank’s 2009 total from stock trading. It oversees more than $1 billion of assets. Carpenter, a 15-year Citigroup veteran who previously oversaw U.S. stock analysis, had assembled the 20-person unit over the past three years. He told Citigroup executives his decision to leave was partly influenced by President Barack Obama ’s Jan. 21 announcement that banks should stop making so- called proprietary trades because the activity increases the risk of future government bailouts, the people said. “People in these large firms are starting to say to themselves that this could become a reality,” said Jeanne Branthover , leader of the financial-services practice at Boyden Global Executive Search in New York. “I would not think it would be the sole reason someone would move, because it’s not a done deal, but it may be a factor in their decision-making.” Carpenter, 41, began interviewing with several hedge funds last year, one person briefed on the matter said. Staying in Business Citigroup officials plan to stay in proprietary trading for now, on the expectation that Obama’s proposal will fail or be watered down in Congress, the people briefed on the matter said. The Wall Street Journal reported the departures earlier today. No replacement was named for Carpenter. The proprietary- trading unit will be overseen on an interim basis by Kevin Russell , Citigroup’s head of Americas stock trading. The buildup of Carpenter’s unit was a priority of John Havens , a longtime deputy of Citigroup Chief Executive Officer Vikram Pandit ’s who oversees the company’s trading and investment banking, one person said. Havens, 53, led stock- trading at Morgan Stanley, where he and Pandit, 53, worked for two decades through 2005. Citigroup in December repaid its remaining $20 billion of U.S. bailout money, partly to escape government restrictions on compensation that threatened to drive away top talent. Pandit has said the bank needs to pay employees competitively to succeed. Your Local Partner Worldwide. Boyden New York www.boyden.com 275 Madison Avenue www.boyden.com/newyork Suite 1500 New York, NY 10018 t) 1 212 949.9400 Phibro Sale Last year, Citigroup decided to sell its proprietary energy-trading business, Phibro LLC, to avoid drawing government scrutiny of head trader Andrew Hall ’s $100 million pay package. That business had accounted for most of Citigroup’s $667 million in commodities-trading revenue in 2008. Citigroup shares fell 19 cents, or 5.6 percent, to $3.18 as of 4:15 p.m. in New York Stock Exchange composite trading. Moore Capital, based in New York, has about $14 billion under management and over the past year has hired traders from banks including Goldman Sachs Group Inc. and rival hedge funds including Brevan Howard Asset Management LLP. It is run by Louis Moore Bacon , 53, who founded the firm in the 1980s. Moore’s largest fund, Moore Global Investment Fund, gained 22 percent last year, according to investors. Carpenter and Newton will join the firm after a waiting period required by their Citigroup employment agreements, three people said. They’re barred from soliciting members of their former team. A spokesman for Moore, Shawn Pattison , declined to comment. To contact the reporter on this story: Bradley Keoun in New York at [email protected] . .