Citigroup acting CEO Bischoff faces tough task

NEW YORK (Reuters) - Sir Win Bischoff has taken on a tough role -- being acting chief executive for a giant bank that needs plenty of attention.

The new leader of Citigroup Inc, who replaces Charles Prince, is taking the reins as the largest U.S. bank braces for another set of write-downs, the share price hovers around 2003 levels, and investors fret about the bank's capital.

Bischoff, 66, comes to the job with experience. He joined J Henry Schroder in London 1966, was named group chief executive of Schroders Plc in 1984, and was appointed chairman in 1995.

When Salomon Smith Barney, a unit of Citigroup, bought Schroder's investment banking business in May 2000, Bischoff became chairman of Citi Europe.

Analysts and people familiar with the bank said Bischoff should provide a steady hand as Citi navigates rocky shoals. Bischoff told Reuters that he does not expect to turn Citi onto another course.

"Certainly there won't be any (strategic) changes in the interim," Bischoff said.

Bischoff has not run a financial institution day-to-day for some time, and is likely to remain chief executive for a relatively short time, analysts said.

"I wouldn't think they would be calling this a long-term solution," said Ralph Cole, portfolio manager at Ferguson Wellman Capital Management in Portland, Oregon, which owns Citi shares.

Winfried Franz Wilhelm Bischoff received his early education in Cologne and Dusseldorf, Germany, but moved to South Africa as a teenager, where he earned his undergraduate degree.

Citi said on Sunday that Prince resigned as chairman and chief executive, as the bank said it may suffer another $8 billion to $11 billion of subprime write-downs, before taxes.

The bank said the size of the write-downs may increase if market conditions deteriorate further.

Those write-offs are on top of some $6.5 billion of charge-offs and losses recorded in the third quarter.

Citi's shares closed at $37.73 on Friday, their lowest level since April 2003.

"This has really deteriorated into quite a mess," said Ferguson Wellman's Cole.