NEW YORK, Nov. 13, 2007 (Thomson Financial delivered by Newstex) -- Citigroup (NYSE:C) Inc. Tuesday is reorganizing its investment banking unit, starting with the removal of the co-heads of its credit markets group and a tighter integration of its equity and fixed income sales and underwriting operations, according to a report in the Wall Street Journal.

An internal company memo said Chad Leat, a co-head of the credit markets group will assume a role focusing on key clients and global transactions and will also focus on Citigroup's pipeline of loans made to fund buyouts, the Journal said. His co-head, Mark Watson, will work on transitional issues, before taking a new role within the company.

Citigroup will also combine its equity capital markets and fixed income capital markets groups to form a new capital markets origination group and will combine the sales functions of the equities, fixed income, currencies and commodities sectors to form the investor client group, according to the report.

The news comes amid a Citigroup announcement last week that it expects $8 billion to $11 billion in new write-downs related to the company's exposure to the subprime mortgage industry meltdown earlier this year.

Shares of Citigroup rose 3.2% to $34.65.

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