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Rubin Quits Citi; Smith Barney for Sale

Ex-Treasury Sec. saw company's stock dive 90% since late '06

By Will McCahill, Newser Staff

Posted Jan 9, 2009 3:15 PM CST

(Newser) – Former Treasury Secretary Robert Rubin is leaving his posts at struggling Citigroup, the Wall Street Journal reports. He retired as a senior counselor effective today, and won’t pursue another term on the board of directors. Journal sources also say Citigroup is in talks to sell Smith Barney, its brokerage and asset-management unit. A joint venture with Morgan Stanley is one option under consideration, they say.

Rubin joined the firm in 1999 and was instrumental in decisions in 2004-05 to add risk to the company’s investment portfolio—moves that resulted in its stock value tumbling 90% since 2006. Rubin cited broader trouble in the financial system for Citigroup’s continuing ills, and, a source told the Journal, he is “tired of it.” The company lost $20 billion in the past year and had to turn to the federal government for $45 billion in bailout funds. The 70-year-old Rubin plans to spend more time on nonprofit and other outside endeavors.

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Robert Rubin, Treasury Secretary under Bill Clinton, retired today as a senior counselor to Citigroup and won't stand for re-election at the company's next directors meeting. (AP Photo)

Former Treasury Secretary Robert Rubin has been part of the team of economic advisers helping Barack Obama plan his administration. (AP Photo)

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Rubin Quits Citi; Smith Barney for Sale