In this episode of the FT News Briefing, host Safia Ahmed covers major global business and geopolitical developments. First, FT US banking correspondent Aquila Quino joins to analyze Citigroup's upcoming quarterly earnings report. Quino details CEO Jane Fraser's aggressive restructuring efforts since 2021, including cutting 20,000 jobs, exiting 14 retail markets, and navigating controversial executive hires, all while working to resolve outstanding regulatory consent orders from a 2020 transaction error. Next, the briefing highlights escalating military tensions between the United States and Iran following fresh strikes and disputes over the status of the critical Strait of Hormuz shipping lane. Finally, FT banking editor Hortensa Aliyi discusses internal power struggles at the World Economic Forum. Aliyi explains how trustees like Larry Fink and André Hoffmann are pushing to shrink the 28-member board to increase efficiency and diminish the influence of founder Klaus Schwab, amid a broader leadership vacuum and existential questions about the forum's globalist mission.

Wall Street Banks Project Five-Year High in Fees

The five largest US investment banks—JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America, and Citigroup—are projected to bring in $11.1 billion in quarterly fees.

This projected total represents a year-over-year increase of nearly one-third, driven by SpaceX's blockbuster listing and a resurgence in mega-mergers.

Citigroup Navigates Restructuring and Executive Drama

CEO Jane Fraser has executed the most ambitious restructuring at Citigroup in a decade, exiting 14 retail markets and cutting 20,000 jobs over three years to simplify operations.

Citigroup remains constrained by two regulatory consent orders stemming from a 2020 error where the bank mistakenly wired $900 million to Revlon creditors instead of a $7.8 million interest payment.

"There's really been a sort of turnaround in the stock, and the bank was the highest performing last year." - Aquila

High-profile hires Andy Seeg (Wealth) and Vase Raghavan (Investment Banking) have generated internal friction, with Seeg facing management complaints and Raghavan facing past bullying allegations at JPMorgan.

US and Iran Clash Over Critical Middle East Waterway

The US launched fresh military strikes against Iran following an Iranian attack on a commercial ship transiting the critical Strait of Hormuz oil and gas transport route.

Geopolitical confusion persists as Tehran announced the Strait of Hormuz is closed, while US President Donald Trump publicly claimed the shipping lane remains open.

Iran retaliated against heavy US bombings by launching a large wave of attacks targeting US-aligned Arab states, including Bahrain, Kuwait, Jordan, Qatar, and Oman.

Power Struggles and Leadership Vacuum at Davos

WEF trustees Larry Fink and André Hoffmann are leading a push to shrink the 28-member board to concentrate decision-making power and increase organizational efficiency.

"They think that kind of power needs to be concentrated into a smaller group of people because it increases efficiency, it can help with accountability, and just move processes faster." - Hortensa

A rival faction aligned with founder Klaus Schwab opposes the board reduction, arguing that a larger board preserves the diversity of opinion central to the WEF's founding spirit.

Fink and Hoffmann are also seeking to change WEF bylaws to eliminate Schwab's ability to appoint family members to the board, effectively removing his remaining influence.

The WEF is experiencing a leadership vacuum following the resignation of chief executive Børge Brende due to an investigation into his links to Jeffrey Epstein.

European Central Bank President Christine Lagarde, a close ally of Schwab, is being watched as a potential candidate to fill the vacant chair position after her term ends on October 27th.