Citi Denies Rumors CEO Is on Chopping Block

Feds have criticized Pandit's strategy; company likely to see $6B quarterly loss
By Kevin Spak,  Newser Staff
Posted Jan 12, 2009 8:48 AM CST
Citi Denies Rumors CEO Is on Chopping Block
Citigroup lost as much as $20 billion in 2008.   (AP Photo)

Even as it prepares a fourth-quarter report that’s expected to miss its target by billions, Citigroup says CEO Vikram Pandit’s job is safe, the Wall Street Journal reports. Pandit’s barely had the job a year, but rumors have flown he’d be a casualty of the company’s next shakeup. Federal regulators are pushing Citi to replace its chairman, the New York Times adds.

“We have confidence in the current management and leadership of Vikram,” said Richard Parsons, the Citigroup director considered the frontrunner to replace the outgoing chairman. Citi will post an operating loss of at least $10 billion Jan. 22, with a net loss close to $6 billion. If those numbers don’t change, they’ll be drastically worse than the $4.1 billion analysts are predicting. (More Citigroup stories.)

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