Sir Win Bischoff, chairman of Citi Europe and a member of Citi's business heads, operating and management committees, was appointed acting chief executive officer at an emergency meeting of the board held on Sunday, Citigroup announced.
But Rubin is expected to step down once the board decides on permanent structure and had said they intend to complete the search for a new CEO as expeditiously as possible, reviewing qualified candidates from outside as well as within our organization.
Vikram S. Pandit, an Indian, who took over Citigroup's investment banking operation in early October, just six months after joining the bank, is one contender. Pandit's love of complex, technical problems and his years of experience in dealing with clients, risk and the more arcane aspects of what makes investment banks run at Morgan Stanley has piqued Rubin's curiosity, The New York Times said.
Other potential candidates include Robert Druskin, the company's chief operating officer; and Gary L. Crittenden, its recently named finance chief.
A special committee, including Rubin and board member and Time Warner chief executive Richard Parsons, will conduct a search for a permanent CEO.
Citigroup is set to announce that it will write off another $8 billion to $11 billion which, the Wall Street Journal said, reflected the declining value of subprime-mortgage-related securities since Sept 30.
That would be in addition to $5.9 billion it wrote down in early October when it reported third quarter results, The Times said.Prince said, "We have made strong progress in our strategy for building for the future, evidenced in the momentum we have achieved in most of our businesses. "Nevertheless, it is my judgment that given the size of the recent losses in our mortgage- backed securities business, the only honorable course for me to take as chief executive oficer is to step down. This is what I advised the Board."
Rubin's standing at Citigroup, The Times said, has long been contentious. In better times, his role as a board member and chairman of the bank's executive committee was often referred to as the "best job in the world."
Rubin, who was the Treasury Secretary under President Bill Clinton, has collected more than $150 million in cash and stock over eight years to serve as the bank's elder statesman, meeting with important clients and building relationships with government and business leaders around the world, though his contract states that he is to have no daily operational responsibilities, it added.
His other role has been to serve as Prince's sounding board and biggest supporter and to help broadly shape the bank's strategy.
