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Citigroup under pressure to rejig board: Report

January 12, 2009 16:59 IST
Financial services provider Citigroup is under pressure from federal banking regulators for shuffling its board, including the replacement of its chairman, amid concerns whether chief executive Vikram Pandit will retain his job, a media report says.

"Federal banking regulators are pressing Citigroup to shake up its board and replace its chairman, Winfried F W Bischoff, in an effort to restore confidence in the beleaguered financial giant," the New York Times said.

NYT further added that "given the turmoil at Citigroup, many analysts and even some Citigroup insiders wonder whether the company's chief executive, Vikram S Pandit, can hold on to his job. While Citigroup insists that Pandit has the full backing of the board, some members have privately expressed some frustration with his leadership."

The daily further said: "Wall Street talk was that Citigroup directors were putting out feelers to find a replacement for Pandit, claims that senior Citigroup executives and board members vigorously deny."

The newspaper quoted Richard D Parsons, the chairman of Warner and a Citigroup director as saying that "there was 'no truth' that the board had considered or spoken with potential successors, and he said it had no immediate plans to replace Pandit."

It further added: "But the banks regulators expressed measured confidence that Pandit and his team could succeed, according to people briefed on the situation, and Pandits position appears secure for now."

Besides, Parsons, in an interview on Sunday had said that the Citigroups board was behind the chief.

Since late November, when Citigroup received its first multi-billion dollar federal rescue, Pandit has come under growing pressure to streamline the company's unwieldy structure and overhaul its board.

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