Prince to Resign From Citigroup

CEO takes 'very unusual move' after bleak third quarter earnings and SEC probe
By Neal Colgrass,  Newser Staff
Posted Nov 2, 2007 7:36 PM CDT
Citigroup Chairman and Chief Executive Charles Prince speaks during a ceremony in South Korea in 2007. Prince will retire this weekend in the wake of Citigroup's third quarter earnings loses and growing...   (Associated Press)
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(Newser) – Growing pressure on Citigroup Inc. is prompting CEO Charles Prince to end his four-year rein this weekend. Bleak third-quarter earnings and an SEC probe of Citigroup's accounts have amped up existing frustration at the financial services company. Prince has "stepped up and done the right thing without forcing the board to act," once source told the Wall Street Journal.

Details of Citigroup's 57% third quarter slump didn't help Prince. CFO Gary Crittenden said that the company, which took a $3.55 billion writedown tied to the mortgage crisis, will likely keep losing money. And a drop in capital levels has sparked speculation that Citigroup will sell assets or slice dividend payouts. Chairman Robert Rubin and Time Warner CEO Richard Parsons are likely candidates to take over the beleaguered company.