{"id":191,"date":"2007-11-15T12:39:27","date_gmt":"2007-11-15T12:39:27","guid":{"rendered":"http:\/\/www.the-finance-zone.co.uk\/uncategorized\/citigroup-chief-executive-resigns\/"},"modified":"2007-11-15T12:39:27","modified_gmt":"2007-11-15T12:39:27","slug":"citigroup-chief-executive-resigns","status":"publish","type":"post","link":"https:\/\/the-finance-zone.co.uk\/index.php\/2007\/11\/15\/citigroup-chief-executive-resigns\/","title":{"rendered":"Citigroup chief executive resigns"},"content":{"rendered":"\n\n\n
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Charles Prince, the chairman and chief executive of one of the world’s biggest banks, Citigroup, has resigned.<\/strong>He will be replaced as chairman by former US Treasury Secretary Robert Rubin, while Sir Win Bischoff will serve as interim chief executive.<\/p>\n

Investor calls for Mr Prince to go have increased since the bank reported a 57% drop in quarterly profits, after losses in the sub-prime mortgage market.<\/p>\n

He is the second head of a leading US bank to step down within a week. <\/p>\n

The head of Merrill Lynch, Stan O’Neal, resigned after reporting heavy losses.<\/p>\n

After Mr Prince stepped down, Citigroup revealed that it was facing losses of between $8bn and $11bn in previously undisclosed losses due to a decrease in the value of its $55bn portfolio of sub-prime loans.<\/p>\n

And it warned that there could be further losses to come in its trading positions in sub-prime mortgages if its hedging operations did not succeed.<\/p>\n

Citigroup shares fell 4.85% to $35.90 in New York trade on Monday.<\/p>\n

‘Structure is broken’<\/strong><\/p>\n

“Given the size of the recent losses in our mortgage- backed securities business, the only honourable course for me to take as chief executive officer is to step down,” Mr Prince said on Sunday.<\/p>\n

But some analysts say that the sub-prime losses were just the last straw.<\/p>\n

“When you look at the trillions of dollars in assets that Citi has and you’re talking about potential exposure of maybe $15bn: it’s bad but it’s not the end of the world,” said Bill Smith from Smith Asset Management in New York.<\/p>\n

“The actual structure of Citigroup is broken – it’s too big, it’s too bloated and we think it should be broken up into three or four pieces,” he added.<\/p>\n

The board of Citigroup paid tribute to Mr Prince, with Alain Belda saying: “We thank Chuck for his unwavering commitment to Citi, its employees and its shareholders.”<\/p>\n

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Charles Prince, the chairman and chief executive of one of the world’s biggest banks, Citigroup, has resigned.He will be replaced<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[9,48],"tags":[],"class_list":["post-191","post","type-post","status-publish","format-standard","hentry","category-companies","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=191"}],"version-history":[{"count":0,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/191\/revisions"}],"wp:attachment":[{"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/the-finance-zone.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}