Citigroup Shakes up Executives
July 9, 2009 by Mark Ellis
Filed under Business
Troubled financial institution Citigroup has decided to move around several of its executives in what appears to be an attempt to quell the concerns that federal regulators have had about the company. Former president and chief operating officer of FleetBoston Eugene Mcquade has been tapped to become chief executive of Citibank, while CFO Ned Kelly will be replaced by chief accounting officer John Gerspach.
Federal regulators from the Federal Deposit Insurance Corporation have long criticized Citigroup’s management for its apparent lack of experience in retail and commercial banking. Mcquade has the plenty of the kind of experience that the FDIC has been looking for in Citigroup’s executive bench.
Kelly’s replacement also seems to be a move that aims to draw criticism away from Citigroup. As the chief financial officer, Kelly was one of the primary executives as far as interacting with regulators is concerned, but Kelly turned out to elicit an unwelcome amount of regulator criticism and concern as he went about his duties.
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