Citi Faces $6-$10 Billion Write-Off; Prince Is Out
Topics:Banking
Sectors:Financial Services | Banks
Companies:Bank of America Corp | Wachovia Corp | Bear Stearns Companies Inc | Morgan Stanley | Merrill Lynch & Co Inc | Citigroup IncBy David Faber | 03 Nov 2007 | 06:42 PM ET
Citigroup faces a write-down in the range of $6 billion to $10 billion, mainly because of exposure to subprime mortgages and collateralized debt obligations, CNBC has learned.
Citigroup will be parting ways with CEO Charles Prince, according to sources.
--------------------------------------------------------------------------------
Citi Chief Executive Officer Charles Prince has already offered to resign from his post, according to a person familiar with the situation, and the financial services company's board is expected to accept his resignation at an emergency meeting scheduled for Sunday.
The size of Citi's write-off is still being debated, though a source told CNBC that Citi's board is pressing company finance executives to clarify the issue. The firm's audit committee is also scheduled to meet Sunday, in advance of the emergency board meeting.
No interim successor has been named for Prince, and while one candidate leads other prospects, the decision is still "up in the air," according the source. An interim leader will be designated while a full search begins immediately for a successor to Prince.
The Wall Street Journal reported Friday that Robert Rubin is being considered as an interim replacement. But Rubin, the former Treasury secretary and current chairman of Citi's executive committee, has shown hesitancy about taking on the assignment.
Topics:Banking
Sectors:Financial Services | Banks
Companies:Bank of America Corp | Wachovia Corp | Bear Stearns Companies Inc | Morgan Stanley | Merrill Lynch & Co Inc | Citigroup IncBy David Faber | 03 Nov 2007 | 06:42 PM ET
Citigroup faces a write-down in the range of $6 billion to $10 billion, mainly because of exposure to subprime mortgages and collateralized debt obligations, CNBC has learned.
Citigroup will be parting ways with CEO Charles Prince, according to sources.
--------------------------------------------------------------------------------
Citi Chief Executive Officer Charles Prince has already offered to resign from his post, according to a person familiar with the situation, and the financial services company's board is expected to accept his resignation at an emergency meeting scheduled for Sunday.
The size of Citi's write-off is still being debated, though a source told CNBC that Citi's board is pressing company finance executives to clarify the issue. The firm's audit committee is also scheduled to meet Sunday, in advance of the emergency board meeting.
No interim successor has been named for Prince, and while one candidate leads other prospects, the decision is still "up in the air," according the source. An interim leader will be designated while a full search begins immediately for a successor to Prince.
The Wall Street Journal reported Friday that Robert Rubin is being considered as an interim replacement. But Rubin, the former Treasury secretary and current chairman of Citi's executive committee, has shown hesitancy about taking on the assignment.
