October 28, 2004

Jones '69 Resigns From Citigroup

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Thomas W. Jones ’69, a University trustee emeritus and a student leader in the 1969 Straight Takeover, has been removed from his post of running Citigroup asset management, the fund management arm of the large bank, after an internal investigation found that Jones and two other Citigroup executives were at fault for a breakdown in oversight at the firm’s private banking operations in Japan. Jones’s resignation was forced by Citigroup’s chief executive Charles O. Prince, according to The New York Times.

Citigroup released a statement saying that “the Staff of the Securities and Exchange Commission (SEC) has notified Citigroup Asset Management (CAM) … that the SEC Staff is considering recommending a civil injunctive action and/or an administrative proceeding against [Jones and two other executives] relating to the creation and operation of an internal transfer agent unit to serve various CAM-managed funds.”

The other executives are Deryck C. Maughan, chair of Citigroup’s extensive international operations, and Peter Scaturro, chief executive of private banking.

Citigroup has closed a portion of its banking operations in Japan after an investigation by the Japanese Financial Services Authority turned up evidence of manipulative sales practices and a lack of fraud-prevention.

It is unknown whether the SEC still plans on filing charges against Jones or what those charges would be.

Jones held top posts at John Hancock, TIAA-CREF and Salomon Brothers before joining Citigroup. At the time of his dismissal, Jones was responsible for $490 billion under management at Citigroup asset management, according to The New York Times.

He has also established undergraduate scholarships for the University and endowed the James A. Perkins Prize for Interracial Understanding and Harmony.

In 2002, Jones was listed as Fortune Magazine’s fifth most powerful black executive.

Archived article by Michael Morisy
Sun Senior Writer