Fin24

Citigroup boss quits in shock move

2012-10-16 15:39

New York - Citigroup Chief Executive Vikram Pandit has resigned, effectively immediately, a shock change at the top of the bank just one day after surprisingly strong quarterly results.

He is also stepping down as a board member immediately.

A statement on Tuesday from Chairperson Michael O’Neill said Michael Corbat, previously chief executive for Europe, Middle East and Africa, would succeed Pandit as CEO and become a board member.

Chief Operating Officer John Havens, a long-time associate of Pandit, also resigned.

Pandit’s departure follows a series of high-profile defeats this year.

In March the Federal Reserve rejected Citigroup’s capital plans after a stress test. Pandit had led analysts and investors to believe the dividend-raising plans would be approved.

Just last month, Pandit agreed to a low sale price for his bank’s stake in the brokerage operated by Morgan Stanley.

Citigroup took a $4.7bn charge in the third quarter to write down the value of that stake.

Citigroup shares fell 2.4% to $35.77 in premarket trading Tuesday. The shares rose sharply on Monday after the bank reported quarterly results that were much better than analysts expected.