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Citi shakeup not driven by top regulators-source

Thu Jul 9, 2009 2:42pm EDT

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WASHINGTON, July 9 (Reuters) - The management shake-up announced at Citigroup Inc (C.N) on Thursday was not driven by orders from any top government officials, but were part of the supervisory process that ensures the safety and soundness of financial firms, a source familiar with the matter said.

The Federal Deposit Insurance Corp did not learn until Wednesday night that Citigroup intended to replace its chief financial officer and install a new banking chief, according to the source, who was not authorized to speak publicly.

The changes were unrelated to an independent management review that Citigroup is undergoing, and has not yet completed, the source said, meaning that more dramatic changes could occur among the firm's top ranks.

Citigroup is preparing to give the government a 34 percent equity stake, and its chief executive, Vikram Pandit, is under intense pressure to improve performance, add consumer banking experience in the senior ranks, and shed toxic or unwanted assets.

(Reporting by Karey Wutkowski)

((E-mail:karey.wutkowski@thomsonreuters.com +1 202 898 8374)) Keywords: CITIGROUP/REGULATORS

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