Citigroup CEO Resigns , Charles Prince

Citigroup Inc. said Sunday Chairman and Chief Executive Charles Prince, beset by the company's billions of dollars in losses from investing in bad debt, has retired and is being replaced as chairman by former Treasury Secretary Robert Rubin.

In an announcement following an emergency meeting of Citi's board, the nation's largest banking company also said Sir Win Bischoff, chairman of Citi Europe and a Member of the Citi management and operating committees, would serve as interim CEO.
Prince's resignation, which was secured at an emergency meeting of the Citi board Sunday, was expected after the nation's largest banking company revealed it had to write down billions of dollars in bad debt. He joined former Merrill Lynch & Co. CEO Stan O'Neal, who resigned from the investment bank last month, as the highest-profile casualties of the debt crisis that has cost billions at other financial institutions as well.
The Wall Street Journal, which had early word of Prince's departure in its online edition, also said Citi would also be announcing that it would take an additional $8 billion to $11 billion in writedowns. It has already said it was writing down $6.5 billion in assets. The company did not mention any writedowns in its statement.

To know more about Robert Rubin

When Robert Rubin joined Citigroup Inc. in 1999, he said he never wanted to lead the nation's largest financial institution.
Rubin, Treasury secretary under President Bill Clinton, was named to the chairman's office at Citi a year after the financial services company was formed through the combination of Travelers Group and Citibank. At a packed auditorium at Citi's midtown Manhattan headquarters, Rubin walked from behind a curtain to a standing ovation by employees thinking he might one day lead the new company.
Now he finds himself not only leading the company after CEO Chuck Prince resigned, but contending with massive writedowns triggered by the summer's credit turmoil. Rubin said he will search "as expeditiously as possible" for someone to take the CEO role.
And, as interim CEO, Citigroup's board looked to Europe for leadership. Sir Win Bischoff, the London-based chairman of Citi's European operations, has been put in charge with leading the company until a replacement for Prince can be found.
Bischoff came to Citigroup after leading Schroders PLC, one of Britain's oldest investment banks that was sold to Citi in 2000. The European operations of Citi's investment bank has been among the company's most profitable units.
Both men find themselves as unlikely leaders of a company considered to be one of the most innovative in the industry. Bischoff, 66, was seen likely retiring within the next few years and had settled into a more hands-off role in the day-to-day operations of Citi's European operations. Rubin, 69, also was not seen taking a greater role at the company.
Short-listed as likely successors to Prince are a few well-known names on Wall Street, including John Thain, the current CEO of NYSE Euronext, who was a former chief operating officer at Goldman Sachs Group Inc. Also considered to be in contention is Dick Parsons, chief executive of Time Warner Group Inc. and a board member of Citigroup.

source :- topix and associated press

Genpact buys Citigroup Global Services for $700m

Atlast the cat on the wall story ended for the $700M. (Source times of india)..

CGSL sold for $700 M
But Answers for the below Question????? Priceless
So Who AM I (Citi or Ganpact)

MUMBAI/BANGALORE: India’ largest BPO company and the NYSE-listed Genpact is said to have won the race to buy out Citi group’s call centres in India. The deal was clinched after a week of final negotiations for around $700 million, according to industry sources.

"No comment and (there is) nothing accurate in the rumours at all," said Genpact president and CEO Pramod Bhasin, who, along with senior executives, is stationed in New York to stitch up the deal.

The final leg of negotiations had just two suitors — Genpact and Mumbai-based Firstsource — the only large third party BPOs who specialise in banking and insurance processes. Though both companies are said to have quoted around $700 million each for the buyout, Genpact is said to have won the deal on its ability to raise the required finances easily.

With its win, Genpact will re-affirm its position as India’s largest BPO by a big margin. The Citi acquisition will add around 10,000 agents to its current strength of over 20,000 executives spread over eight cities in India.

When Citi first put its BPO arm, Citi Global Services on sale in June, investment bankers expected a valuation of over $1 billion for the entire business. Later, after the subprime crisis, BPO stock have been trading weak in US and shares of firms like EXL and WNS have fallen considerably. It is, however, not known if Citi has divested its stake in the BPO arm entirely or has retained a part of it.

Sabya Sachi Satpathy, senior director, Neo-IT, an offshore advisory firm, said the deal will set a new trend in the market. "We will see captives increasingly exploring JVs and buy-outs and third party outsourcing options to optimise the cost base and to enhance flexibility."