Citi management gets satisfactory marks in review
BOSTON/NEW YORK (Reuters) - A review of Citigroup Inc's (C.N) management team, demanded by U.S. regulators in the aftermath of the financial crisis, gave it satisfactory marks, according to a person familiar with the matter.
However, the reviewers from outside consultant Egon Zehnder International were less favorable about two key members of Chief Executive Vikram Pandit's team -- Vice Chairman Lewis Kaden and Chief Administrative Officer Don Callahan, the source said.
The reviewers said some shuffling of senior executives might be necessary, the source said.
It was unclear which executives at Citigroup were initially targeted for the review.
The Wall Street Journal reported that Citigroup's board met Tuesday to consider a response to the review. Possible changes include reassigning roles or responsibilities among executives.
A Citigroup spokesman declined to comment.
Citigroup shares closed down 0.6 percent at $4.64 on the New York Stock Exchange, lagging a 1.2 percent gain in the sectoral KBW Banks index .BKX.
Reports have said that the review was conducted as a consequence of the bank's stress test earlier this year which required it to raise more capital.
The Federal Deposit Insurance Corp required the bank to hire an outside firm to perform its review and the board selected Egon Zehnder.
FDIC Chairman Sheila Bair has been a prominent critic of Citigroup's business practices and governance. The announcement last week that Bank of America Corp (BAC.N) Chief Executive Ken Lewis was on the way out heightened speculation that Pandit could suffer the same fate.
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