U.S. regulators have made Citigroup hire external consultants to consider whether its current management is up to the job of leading the troubled bank out of the financial crisis, reported the Financial Times. It said people close to the situation said Citi had retained Egon Zehnder, a headhunter and board advisory consultancy, to carry out an in-depth management review requested by the government after stress tests on banks in May. The push for Citi to enlist external help, led by the Federal Deposit Insurance Corporation and backed by other regulators, underlines authorities’ desire to keep Citi’s upper echelons under control after rescuing the bank with $45 billion. It also raises questions about the long-term future of Vikram Pandit, Citi’s chief executive who is under fire from the FDIC, and other senior executives. The sources said Citi had to present a plan of action about possible managerial changes to the board and regulators by the time it reports third-quarter results in October. Citi has added eight new directors and replaced its finance chief in recent months.
Citi Forced to Bring in Consultant for Management Checks
Under pressure from the government, Citi hired Egon Zehnder, to carry out an in-depth management review.
August 13, 2009