Citi, the US banking giant, is to merge its investment and corporate banking operations in yet another attempt by the troubled US financial conglomerate to break down barriers between its businesses, the Financial Times said.

The move, which could be announced internally as early as this week, is part of efforts by Vikram Pandit, the chief executive, to restore Citi’s fortunes after it was hit by $50 billion-plus in credit-related losses and had to be rescued by the US government.

However, the FT story made no mention of any impact that such a move would have on Citi’s private banking operations. Citi did not immediately reply when contacted by WealthBriefing.

People close to the situation said the creation of the new unit was aimed at increasing Citi’s ability to sell products ranging from loans and trading services to advice on takeovers and financing to large companies.

The two units are already merged in the company’s financial statements, where they are treated as one division.

However, Citi’s new leadership, which took over in December after the ousting of Chuck Prince, felt co-operation between corporate and investment bankers was insufficient, according to people close to the situation.