Allegations of Sexual Harassment and Discrimination at Citigroup
In a recent development that has shaken the financial world, a former managing director at Citigroup has filed a lawsuit against the institution. Julia Carreon, who previously held the position of Citi Wealth’s global head of platform and experiences, alleges that she was forced out of her role due to an environment of sexual harassment and discrimination.
According to Carreon, the bank’s human resources department and its culture played a substantial role in her departure in August 2024. In her lawsuit, which was filed on Monday, Carreon alleges that one of the bank’s senior executives, Andy Sieg, was involved in the harassment. Furthermore, she claims that the bank’s HR department was weaponised to oust her from her position.
Claims of a Discriminatory and Sexually Harassing Culture
The complaint against Citigroup includes serious allegations of a discriminatory and sexually harassing culture. Carreon asserts that Sieg, who heads Citi’s wealth business, tarnished her reputation within the organisation, forcing her to leave the firm.
Notably, Carreon alleges that the bank subjected her to a sexist investigation into her professional relationship with Sieg, rather than investigating Sieg himself. This investigation followed an earlier probe into Sieg over allegations of bullying, which, according to the Financial Times, was conducted without interviewing some of the senior women who had voiced concerns.
Carreon has accused Citi’s HR department of performing a biased investigation into a baseless bullying claim against her. She also accuses the bank of conducting a one-sided probe into an alleged inappropriate relationship, where “HR representatives posed questions as pre-determined conclusions”.
The Role of Citigroup’s HR Department
In her interview with the Financial Times, Carreon stated, “In my opinion, Citi’s HR doesn’t investigate misconduct, they manage outcomes for senior management.” She also pointed out that it’s a common perception among women at Citi that it’s impossible to survive one of these investigations. This raises serious concerns about the role of HR departments in managing and protecting employees’ interests.
Allegations of Sexual Harassment by a Senior Executive
The lawsuit alleges that Sieg subjected Carreon to relentless and egregious sexual harassment, manipulation, and grooming. This included frequent calls and text messages, often from a burner phone, and the sharing of confidential information under the pretext of not having anyone else to confide in.
The complaint further alleges that Sieg insinuated to colleagues that he and Carreon were in an intimate relationship, by demonstrating physical proximity and claiming they shared a secret song. This, combined with the HR department’s alleged biased investigation, has led Carreon to assert that Citi’s culture is discriminatory and sexually harassing.
Implications for Citigroup
These allegations come as a significant blow to Citigroup, which is the most high-profile global bank to be led by a woman, Jane Fraser. Fraser has been striving to modernize and simplify the bank, including launching a plan in early 2024 to cut 20,000 jobs by the end of the year.
While Citigroup has responded by stating that the lawsuit has no merit and that they will demonstrate this through the legal process, the allegations have undoubtedly cast a shadow over the institution’s reputation. As the case unfolds, it will be crucial to see how Citigroup responds and what actions it takes to address the serious concerns raised by the lawsuit.
For more details on this developing story, click Here.
