November 4, 2007 / 10:16 PM / 10 years ago

Timeline: Citigroup turmoil seen ending in CEO resignation

NEW YORK (Reuters) - The following is a chronology of recent events at Citigroup Inc, and how it got where it is:

November 2, 2007: An emergency board meeting is called for Sunday, according to people familiar with the situation. The New York Times and Wall Street Journal report that Chief Executive Charles Prince plans to resign at the meeting.

October 31, 2007: CIBC World Markets analyst Meredith Whitney says in a note to investors that Citi may have to cut its dividend, sell assets, or issue securities to raise some $30 billion of capital. Citi’s shares fall nearly 7 percent the next day.

October 15, 2007: Citi posts a 57 percent decline in third-quarter profit, hurt by $6.5 billion of write-downs and losses in areas including subprime mortgages. Prince calls the performance “frankly surprising.”

October 11, 2007: Vikram Pandit is named head of commercial and investment banking, trading, and alternative investments. Trading chief Thomas Maheras leaves, as does Randy Barker, one of Citi’s three heads of fixed income.

July 20, 2007: Citi boosts quarterly profit a higher-than-expected 18 percent. Operating revenue rises faster than expenses for the second straight quarter, signaling to some investors that cost problems are under control.

April 27, 2007: A majority of Nikko Cordial Corp shareholders accept Citi’s offer for the Japanese brokerages’ shares. Citi agrees to pay $7.7 billion. Six months later, Citi agrees to buy the rest of Nikko.

April 13, 2007: Citi says it is buying Old Lane Partners GP LLC, a hedge fund co-founded by Pandit, a former Morgan Stanley executive.

April 11, 2007: Citi announces plans to eliminate 17,000 jobs, or about 5 percent of its work force, and save $4.58 billion a year by 2009.

March 12, 2007: Gary Crittenden becomes chief financial officer, after leaving the same role at American Express Co. He replaces Sallie Krawcheck, who takes over Citi’s wealth management unit. She replaces Todd Thomson, who left the bank.

February 13, 2007: The bank says it will rebrand itself as “Citi,” while keeping its legal name as Citigroup, and sells its trademark red umbrella logo to St. Paul Travelers Cos, which renames itself Travelers Cos.

January 9, 2007: Citi says it will close most of its Japanese consumer finance branches and suffer a $370 million quarterly loss in that unit, hit by law changes that cut the maximum interest rate in loans.

January 1, 2007: Robert Druskin becomes chief operating officer, with a mandate to cut costs.

July 2006: Saudi Prince Alwaleed bin Talal, the largest individual Citi shareholder, demands “draconian” measures to cut costs.

April 2006: Sanford “Sandy” Weill, the chief architect of Citigroup, steps down as chairman.

December 2005: Citi swaps its asset management business for Legg Mason Inc’s retail broker business.

October 2005: Marjorie Magner, consumer banking chief, steps down.

August 2005: Robert Willumstad, president and chief operating officer, resigns.

June 2005: Citi says it will pay $2 billion to Enron Corp investors who accused it of helping the bankrupt energy company in a massive accounting fraud.

November 2004: Sallie Krawcheck, head of private client wealth management and equity research, swaps jobs with Todd Thomson, chief financial officer.

Sept 2004: Japan’s Financial Services Authority orders Citi to shut down its Japanese private bank. Prince visits Japan the next month and apologizes.

May 10, 2004: Citi agrees to pay $2.6 billion to investors in WorldCom Inc who accused the bank of helping the bankrupt phone company defraud investors.

Oct 1, 2003: Prince replaces Weill as Citi’s chief executive. Weill remains chairman. Prince’s promotion had been announced in July.

April 2003: Citi agrees to pay $400 million as part of a global settlement involving 10 banks over inflated stock research.

November 2000: Citi pays $31 billion for Associates First Capital Corp, an acquisition that causes higher exposure to bad consumer loans in the United States and Japan.

April 2000: John Reed retires as co-chief executive.

November 1999: U.S. President Bill Clinton repeals the Glass-Steagall act that had separated commercial and investment banking since the 1930s.

October 8, 1998: Citigroup is created when Weill’s Travelers Group acquires Citicorp.

1986: Weill becomes chairman of Commercial Credit, a Baltimore consumer finance company where Prince had been working. He would later acquire Primerica — whose holdings included the brokerage Smith Barney — and Travelers. In 1997, Travelers Group acquired Salomon Inc.

1984: John Reed is elected chairman of Citicorp.

1974: First National City Corp changes its name to Citicorp.

1965: First National City Bank enters the credit card business.

June 16, 1812: City Bank of New York, which will later become National City Bank, opens for business in New York with $2 million of capital.

(Sources: Reuters, Citigroup Web site)

Reporting by Dan Wilchins

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