FIG Investment Banking vs. FIG Corporate Banking
Can anyone give me details on the difference between day-to-day responsibilities in FIG Investment Banking vs FIG Corporate Banking?
I've been told Citi FIG investment and corporate banking are unique from both other banks as well as other groups within Citi. I was told Citi integrates the two, with Corporate Banking acting as the relationship manager and managing simple credit facilities while Investment Banking models IPOs and M&A transactions.
Is this accurate? I always thought the discrepancy was the size of the companies they advise, not the actual content of their work. I apologize; this is rather confusing for me.
I don't know exactly how Citi works but in my bank the Corporate Banking people act as the Relationship Managers and they are the ones that arrange B/S transactions such as Loan Syndications, revolving facilities etc and we also undertake DCM transactions (we do the structuring and the FICC guys help with the sale). Anything else such as M&A and ECM goes to the IB team, however the FIG group sits within IB so we don't deal with any FIG customer at all.
Corporate Bankers in my group sit on the same floor but I have no idea what they actually do.......
I would say that I think your assessment is correct. The FIG investment could also include other advisory services too, like ALM or portfolio management. They also can offer derivatives products too.
My bank split the two a few years back with the FIG corporate group now reporting up through the bank group. They offer depository services, fed funds lines and other credit lines as well. They also used to handle downstream credit participations/syndications with these banks too. Smaller banks who want to keep their relationships, but have surpassed their legal lending limits would seek larger correspondent banks to take what they can't handle (from the background). So, they also had a component of C&I underwriting as well, but they winded that down when things turned south and bank failures increased. Some of these types of FIG groups also handle mortgage warehousing, i.e. lending to downstream mortgage bankers.
All this said, they still work fairly closely with the FIG capital markets group. For instance, the capital market groups may work on the securitizations and sales of the mortgages sourced by the mortgage warehousing. Credit and other relationship decisions do factor in cap market business as well, and the continue to refer business back and forth. The split was largely to separate the credit functions and approvals from the capital raising and advisory functions. Never really thought about it until just now, but the beginning of the split was right around the time of the wind down of the trust preferred securities market.
Sounds accurate. Corporate banking works with the largest clients, generally $500mm and up. Commercial banking works with $500mm and lower (how low depends on the bank). Have no idea how it is broken up in FIG, probably by assets instead of revenue.
Investment Banking is transaction advisory. Corporate banking is mostly lending (correspondent banking perhaps in this case) and services that banks may require (i.e. treasury/cash mgmt, depository options, Forex/Int'l Settlements, etc.)
M&A, ECM and DCM work should still fall under the IB group, not the CB group.
FIG CB at Citi is different than any other CB division there. They work on a lot of M&A deals and hours are pretty much IBD hours.
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