Citigroup bank chief steps down

[InkAddict]

Source: BBC - Monday, 5 November 2007, 02:31 GMT

Citigroup boss Charles Prince has resigned and will be replaced by former Treasury Secretary Robert Rubin...

Read more: http://news.bbc.co.uk/2/hi/business/7078251.stm

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More pain to come.

[valerief]

1. Is he related to Eric Prince? nt

[Deja Q]

2. Well, he screwed up their company. Does he get a golden parachute as a reward for doing so?

[Enrique]

3. I hope he'll be ok

[NanceGreggs]

4. Once he switches from butter to margarine ...

... I'm sure he'll squeeze by on his compensation package.

[TheFarseer]

5. that stock is going UP

They couldn't have gotten a bigger name.

[neoteric lefty]

8. Rubin and Bischoff will be out as soon as the comittee finds a replacement

I work for CG (gasp!) and they are going to be looking for someone outside of the family (Weill and Prince both came from Travelers when they bought Citibank). Rubin is there to keep the ship moving in the next 60-90 days.

[Lint Head]

6. More like bails out with his golden parachute.

:dem:

[kurth]

7. He's just losing the use of the company airplane

That's about it, folks.

[Acadia Blue]

9. AWWWW did he get a gigantic serverence package like the other thieves?

[formercia]

10. Citigroup chief executive resigns

Source: BBC

Charles Prince, the chairman and chief executive of one of the world's biggest banks, Citigroup, has resigned.

He will be replaced as chairman by former US Treasury Secretary Robert Rubin, while Sir Win Bischoff will serve as interim chief executive.

--snip--

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.

Read more: http://news.bbc.co.uk/2/hi/business/7078251.stm

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With sub-prime (BBB) notes selling for 20 cents on the dollar, CITI is going to take a bath.

[benld74]

11. We will all be getting wet on this one folks,,

will make the S&L fiasco under Bush 1 look like a lemonade stand collapse!

[formercia]

12. When paper is going for 20 cents on the Dollar now

and we're just getting into the crunch. How low can it go?

[RamboLiberal]

13. Credit Rating Downgraded

Citigroup Inc's (NYSE:C - News) problems deepened on Monday as it was unable to assure investors a potential $11 billion write-down for subprime mortgages won't grow, and its nearly pristine credit rating was downgraded.

The largest U.S. bank also reduced previously reported third-quarter profit because of worsening credit market problems, which it expects to reduce future cash flow. Its shares fell more than 5 percent.

"There's no way I think anyone can give you an assurance of how things are going to move," Chief Financial Officer Gary Crittenden said on a conference call. "We've taken what we think is a reasonable stab."

Citigroup's struggles comes as the bank faces a leadership void following Chairman and Chief Executive Charles Prince's resignation on Sunday.

http://biz.yahoo.com/rb/071105/citigroup.html?.v=2

Ironic - now they know how it feels. If you go belly up will our debt be forgiven?

[pfitz59]

14. How the mighty have fallen....

"Citigroup’s primary commitment is doing the right thing for our shareholders, customers and employees – every day. We have created a strong business model that serves our customers well. As an organization, we place a premium on integrity and aspire to the highest standards of professionalism. As a result of recent events, we have recognized that we need to reexamine our business practices and make appropriate changes."

http://www.citigroup.com/citigroup/press/2002/020908a.htm