Struggling Citi Names Pandit CEO

Former heads knew of losses, SEC claims

(NEWSER) - Citigroup 's top brass lied about their knowledge of the firm's subprime losses, the SEC alleges. Court fillings from the SEC suggest former chief executive Charles 'Chuck' Prince and former senior adviser Robert Rubin were well aware that the highest-rated segments of subprime mortgage-backed securities were the source of $200 million in losses in October 2007, even though they denied it at the time, reports TheStreet . The firm went on to receive $45 billion in bailout funds. More»

Tepid hearings reveal pretty much nothing

(NEWSER) - If you’re like Peggy Noonan, you devoured CSPAN’s coverage of this week's Financial Industry Inquiry Commission hearings, and you got to see, live, the dramatic testimony of ex-Citigroup CEO Charles Prince. “Let’s be real,” Prince said. “You, for political reasons, both Republicans and Democrats, finagled the mortgage system so that people who make, like, zero dollars were given mortgages for $600,000 homes. … And Wall Street? We went to town, baby…. You’re finaglers, and we’re finaglers. I play for dollars, you play for votes.” More»

Prince, Rubin take no responsibility at inquiry hearing in DC

(NEWSER) - Citigroup's former CEO Chuck Prince and former chairman Robert Rubin sure are sorry that their bank’s toxic assets struck a near-fatal blow to the economy and necessitated a $45 billion federal bailout, but they really didn’t see it coming. That’s the gist of their testimony today in front of the Financial Crisis Inquiry Commission in Washington. “I’m sorry,” said Prince. He “did not see the unprecedented market collapse that lay before us.” More»

(NEWSER) - Say goodbye to the Citigroup empire. When the company releases its earnings next week, it'll also unveil a drastic plan to slice away businesses until it’s roughly two-thirds of its current size, the Wall Street Journal reports, and looks much like Citicorp did before the merger that created Citigroup. After ceding Smith Barney to Morgan Stanley and shedding or shrinking several other units, the new leaner Citi will cater to large corporations and rich people. More»

Merger or sale become options as bank scrambles to stop the drop

(NEWSER) - Citigroup is keeping all its options on the table as its share price plunges—including selling itself, insiders tell the Wall Street Journal. The battered giant's share price plummeted another 26% yesterday—its worst one-day hit ever—chalking up an 83% dive for the year. Directors plan crisis talks today. More»