Citi Appoint New Chief Exec

by Stewart Douglas

Story link: Citi Appoint New Chief Exec

Troubled banking group Citigroup has today announced that it has appointed a new chief executive following the departure of Chuck Prince last month over the sub-prime losses uncovered by the banking firm, seeing an internal candidate appointed to the post.

Vikram Pandit, formerly of the Citigroup investment banking division has been appointed to the position of chief executive of the entire group, despite not initially being favoured for the post.  However after several high profile external candidates publicly rejected moves by Citigroup to secure their appointment, the bank has come under increasing media scrutiny following this appointment.

In the immediate run up to his appointment today, Vikram Pandit had been thought to be the front runner following the rejections of candidates from Deutsche Bank and RBS.  Additionally, the failure to capture initial favourite John Thain, now of Merrill Lynch, added to the problems at the bank which has seen it continue to struggle in its perceived recovery process.

Interim chief executive Win Bischoff will now become chairman of the group, and the search will be begin for a candidate to succeed Pandit in his previous position at the head of the investment banking arm of the business.

The reshuffle was prompted by the forced writedowns at the bank which could total up to $17 billion by the time the full extent of the exposure is known.  As a result executive Chuck Prince was forced to stand down, with the search for his replacement culminating in the appointment of Mr Pandit today.

It remains to be seen whether Vikram Pandit will be able to turn around perception at the bank, with a view to re-establishing trust in its investment banking services.