Citigroup's Chairman and Chief Executive Officer Charles Prince resigned Sunday and will be replaced by former Treasury Secretary Robert Rubin.This decision was expected due to the increasingly poor state of the nation's largest banking company. Citigroup lost billions of dollars from investing in bad debt. In the third quarter alone, the company reported the loss of $6.5 billion from "asset writedowns and other credit-related losses". It expects an additional $8-10 billion in writedowns. Writedowns reduce a company's net income.
An emergency meeting by Citi's board determined the end of Prince's role in the company. The group also decided that Sir Win Bischoff, chairman of Citi Europe and a Member of Citi's management and operating committees, would serve as CEO until Rubin takes over the role. It was also expected that Prince would be replaced by Rubin, due to his many leading positions in the economic world. Citi's board hopes that replacing Prince will end the losses and possibly help the company regain substantial profits.
Prince will join former Merrill Lynch and Co. CEO Stan O'Neal, who resigned from the investment bank last month. Both CEO's dealt with billion dollar losses due to debt crises.
Prince had been the CEO of Citigroup for four years. The company's shares closed 20 percent below where they were when he started as Chief Executive.
Charles Prince Resigned
For more information on the resignation http://www.startribune.com/535/story/1528381.htmlcom/535/story/1528381.html
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