Citi CEO under fire again after warning

By Paul Thomasch

NEW YORK (Reuters) - Calls for Citigroup (C.N: Quote, Profile, Research, Stock Buzz) Chief Executive Chuck Prince's resignation grew louder on Monday after the largest U.S. bank warned its third-quarter profit would slide 60 percent, the latest stumble in the 57-year-old lawyer's rocky tenure.

Critics had argued for Prince's dismissal in the past, but investors became less shrill after a solid second quarter and a widening subprime mortgage crisis that seemed to engulf every bank.

But Citi on Monday said its performance in the third quarter was weak even considering the weak markets. The bank forecast a 60 percent drop in third-quarter net income, further frustrating investors who have seen the stock decline 16 percent this year.

At least one major analyst, Deutsche Bank's Mike Mayo, said Prince should go. "We're calling for a change in CEO," he told Reuters. "A $6 billion write-down is the tipping point of bad performance at the company by Chuck Prince."

Citigroup declined to comment.

The latest turn of fortune for Prince comes as he marks his fourth full year in the role at the top of largest U.S. bank by market capitalization -- a period that has included a fair share of ups and downs.

Citi shares have edged up 1.9 percent since Prince took over as CEO from Wall Street legend Sanford "Sandy" Weill, compared with a 20 percent gain in the Philadelphia KBW Bank Index .BKX over the same four-year period.

The last two years have been particularly troubled, as the New York-based bank's largest individual shareholder, Saudi Prince Alwaleed bin Talal, demanded "draconian" steps to cut costs and Prince has faced calls from some investors to break up the bank.