Business

Chairman of Citigroup resignated
by Martina Fischerova

The Chairman and Chief Executive of Citigroup Inc. Charles Prince resignated under the pressure of shareholders last week. They blamed him to be responsible for investments funded by risky debts. The nation' s largest bank is awaiting losses of more than $8 billion after Prince' s expected departure came true after 4 years of his tenure, while many shareholders had criticized him. The resignation had immediate affect on shares which were on Friday 20 percent bellow than they were when Prince joined his chairman position in 2003. He is being replaced by former Treasury Secretary Robert E. Rubin. Rubin has many experience from spending years at US investment bank Goldman Sachs afterwards leading the U.S. economy as Bill Clinton's chief economic adviser. Citigroup hopes his abilities and experience will be much helpful for changing the nowadays situation and that he will continue to fulfill the company' s strategies focusing on international expansion as well. Another fact is Citigroup' s not the only one who has debt problems. Borrowers with poor credit stopped paying their mortgages and many banks took looses on them. Considering to these facts it will be long and difficult way to restore shareholder's confidence in Citigroup.

by Martina Fischerova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

posted by Blog TechSource @ 3:20 PM