Citigroup CEO Charles Prince is Out

[John Kennedy]

His "resignation" to be completed this weekend. Citi may also be spinning off its freshly merged Citi/Smith Barney unit into... Smith Barney. You didn't hear that from me though.

http://mobile.reuters.com/mobile/m/F...33640620071103

[Snowrider]

WSJ leaked this last night

[S.W.A.G]

Saudi Prince Alwaleed bin Talal has lost over 4 bil with citigroup

[Just Paul T.]

His "resignation" to be completed this weekend. Citi may also be spinning off its freshly merged Citi/Smith Barney unit into... Smith Barney. You didn't hear that from me though.

http://mobile.reuters.com/mobile/m/F...33640620071103

finally! that guy was poison and didnt hedge anything against the sub prime market... and yes its very possible that the stock might spinoff to a Smith Barney counterpart

[John Kennedy]

Citigroup Statement on CEO Prince
November 5, 2007

The Board of Directors of Citigroup Inc. (NYSE: C) today announced that Robert E. Rubin, Chairman of the Executive Committee of Citi and a member of the Board of Directors, will serve as Chairman of the Board.

In addition, Sir Win Bischoff, Chairman of Citi Europe and a member of Citi's Business Heads, Operating and Management Committees, will serve as acting Chief Executive Officer. The Board also announced that Charles Prince, Chairman and Chief Executive Officer, has elected to retire from Citi.

The Board has designated a special committee consisting of Mr. Rubin, Alain J.P. Belda, Richard D. Parsons, and Franklin A. Thomas to conduct the search for a new CEO.

Mr. Prince commented, "We have made strong progress in our strategy for building for the future, evidenced in the momentum we have achieved in most of our businesses. Nevertheless, it is my judgment that given the size of the recent losses in our mortgage- backed securities business, the only honorable course for me to take as Chief Executive Officer is to step down. This is what I advised the Board.

"It has been my privilege to lead this powerful diversified financial services company for the past four years and to be affiliated with the directors, shareholders and employees of Citi and its predecessor companies for the past 29 years. I am proud of the significant progress we have made in rapidly building and expanding the scope of our businesses internationally, strengthening our businesses domestically, and restoring excellent relationships with our regulators throughout the world."

Mr. Belda said, "Chuck has been an extraordinarily committed leader who took on many difficult issues that needed to be addressed and strengthened Citi's position for the future. He moved the company toward its higher margin businesses, investing in areas where we have key competitive advantages. He augmented our unrivaled international franchise through groundbreaking acquisitions and partnerships, greatly improved our technology, and invested in our people. We thank Chuck for his unwavering commitment to Citi, its employees and its shareholders. Citi has extraordinary people and the Board is committed to working together with them to see that Citi realizes its tremendous potential. We are fortunate that Chuck will continue to serve the Company in an advisory capacity while a search for his replacement is underway."

Mr. Rubin said, "The Board and I have tremendous respect for Chuck's leadership and his accomplishments over the years in helping to develop the Company's culture and direction and honing its formidable competitive advantages. Citi is a unique global institution with a strong capital base, industry-leading businesses and above all, tremendously talented employees, who are our most important asset. I intend to work closely with the Board, Win, and the operating and executive leadership to maintain the momentum of our business. We will continue to focus on taking the steps necessary to help our employees realize their full potential, serve our customers with distinction, and build superior value for all of our shareholders.

"We intend to complete our search for a new CEO as expeditiously as possible, reviewing qualified CEO candidates from outside as well as within our organization. In the interim, we have in Win an acting CEO who has had a distinguished and successful career in the financial industry, serving as Chairman of Schroders plc before joining Citi in 2000 with the acquisition of Schroders' investment banking business by a Citi predecessor company. Most recently, he has chaired our growing businesses in Europe, the Middle East and Africa.

"In addition, a new unit, the sole focus of which will be on managing the assets related to sub-prime mortgage securities and their resultant exposures, has been established. This unit will be separate from the other parts of our capital markets and banking business," Mr. Rubin said.
"As Acting CEO, I am pleased to be able to draw on the talents of our distinguished and committed Board and experienced management team.

Together, we will see that our current plans are effectively executed and will continue to consider new ways to strengthen and grow our businesses," Sir Win said.

[Lushheaven]

i work with one of the main analysts who downgraded the firm. her downgrade let to a 6.9 percent drop in Citigroup's shares last week and is said to have played a major part in CEO Charles Prince's turn to retire. she has received death threats from her rating. our firm is clearly on her side.

CIBC analyst got death threats on Citigroup

Sun Nov 4, 11:43 AM ET

The analyst whose downgrade of Citigroup Inc sparked a broad stock market sell-off on Thursday said she has received several death threats stemming from her research, the Times of London said.

Meredith Whitney of CIBC World Markets Inc late Wednesday downgraded Citigroup to "sector underperformer," saying the largest U.S. bank by assets might need to raise more than $30 billion of capital and cut its dividend.

Her downgrade triggered a 6.9 percent drop in Citigroup's shares on Thursday, leading to declines of 362 points in the Dow Jones industrial average and 2.6 percent in the Standard & Poor's 500, the biggest drop since August.

It also led to renewed calls for Citigroup Chief Executive Charles Prince to step down.

"People are scared to be negative, especially when a company has such a wide holding," Whitney told the Times of London in an article published Saturday.

"Clients are not pleased with my call and I have had several death threats," she continued. "But it was the most straightforward call I've made in my career and I am surprised my peer analysts have been resistant. It's so straightforward, it's indisputable."

Whitney did not immediately return requests for comment on Sunday. In 2005 she married John "Bradshaw" Layfield, a former World Wrestling Entertainment champion. CIBC World Markets is part of Canadian Imperial Bank of Commerce.

Prince is expected to resign later Sunday at an emergency meeting of Citigroup's board of directors, the Wall Street Journal and New York Times said.

His departure would follow significant losses at the bank from exposure to bad loans, mortgages and other debt. Citigroup's market value has fallen below that of Bank of America Corp, the second-largest U.S. bank by assets.