Citigroup Chief Is Replaced by Robert Rubin
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
Citigroup Inc. said today Chairman and Chief Executive Charles Prince, beset by the company’s billions of dollars in losses from investing in bad debt, has retired and is being replaced as chairman by a former treasury secretary, Robert Rubin.
In an announcement following an emergency meeting of Citi’s board, the nation’s largest banking company also said the chairman of Citi Europe, Sir Win Bischoff, would serve as interim CEO.
Mr. Prince’s resignation, which was secured at an emergency meeting of the Citi board today, was expected after the nation’s largest banking company revealed it had to write down billions of dollars in bad debt. He joined a former Merrill Lynch & Co. CEO, 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 as well.
The Wall Street Journal, which had early word of Mr. Prince’s departure in its online edition, also said Citi would also be announcing that it would take an additional $8 billion to $11 billion in writedowns. It has already said it was writing down $6.5 billion in assets. The company did not mention any writedowns in its statement.
