Citigroup boss quits over US debt crisis
Citigroup’s embattled chairman and chief executive Charles Prince, beset by billions of dollars in losses from investing in bad debt, has retired, the company said tonight.
In an announcement following an emergency meeting of Citi’s board, America’s largest banking company said Prince would be replaced as chairman by former US treasury secretary Robert Rubin.
Win Bischoff, chairman of Citi Europe and a member of the Citi management and operating committees, will serve as interim chief executive.
Prince’s resignation was expected after the company revealed it had to write down billions of dollars in bad debt.
He joins former Merrill Lynch chief executive Stan O’Neal, who resigned from the investment bank last month, as the highest-profile casualties of the debt crisis that has cost billions at other financial institutions.
The Wall Street Journal, which had early word of Prince’s departure in its online edition, also said Citi would also be announcing that it would take an additional $8-11bn (€5.5-7.5bn) in writedowns.
It has already said it was writing down $6.5bn (€4.4bn) in assets.
The company did not mention any writedowns in its statement tonight.
