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Citigroup's boss quits as subprime woes mount


Citigroup's boss quits as subprime woes mount


The US subprime mortgage mess has claimed another victim, the boss of the world’s biggest bank, Citigroup. Chairman and chief executive, Charles Prince, has quit as Citigroup revealed it is facing losses of as much as an additional seven and a half billion euros. Prince said “The size of these charges makes stepping down the only honourable course for me to take.”

Sir Win Bischoff, who runs Citigroup’s European operations, is to be acting chief executive. Robert Rubin, the former US Treasury Secretary is to be chairman.

With higher turnover than any other bank Citigroup, has more than 300,000 employees though, in April, it announced 17,000 job cuts.

Bank of America is the second largest in terms of assets, but its market value is greater as Citigroup’s shares have fallen in value by a third this year

Citigroup’s boss resigned just five days after Merrill Lynch ousted its chief executive Stanley O’Neal. That followed a 5.8 billion euro write-down, more than 50% higher than the bank had forecast.

Some banking analysts are predicting that more top heads will roll as further subprime losses emerge.

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