June 10, 2009 > FDIC pushing for shake-up at Citigroup
FDIC pushing for shake-up at Citigroup
Submitted By AP Wire Service
NEW YORK (AP), Jun 05 _ The Federal Deposit Insurance Corp. is reportedly pressing for a management shake-up at embattled bank Citigroup Inc., putting CEO Vikram Pandit in the hot seat.
The Wall Street Journal cited people familiar with the matter for its report on Friday.
``We are confident in our management and confident that we will continue to position Citi for a return to sustained profitability,'' Chairman Richard Parsons said in a statement e-mailed to The Associated Press.
A spokesman for the FDIC declined to comment.
Citigroup shares fell 11 cents, or 3.1 percent, to $3.46 Friday.
Citigroup has been one of the most troubled banks throughout the financial crisis. Investors have long criticized its board and management for allowing the bank to make big investments in the risky housing market _ actions that led to Citigroup reporting billions in losses.
Citigroup has already received $45 billion in government rescue funds, and a portion of that will soon be converted into common shares, making the Treasury Department its largest shareholder.
Last month, the government determined that it would need to raise an additional $5.5 billion as a buffer against future losses.
``We went through a rigorous stress test process, the results of which were agreed to by appropriate regulatory agencies and clearly reflect the significant progress made by this management team over the last 15 months to turn Citi around,'' Parsons said in Friday's statement.