Citi's embattled CEO Charles Prince has stepped down from his role after four years in the face of fallout from the subprime crisis. Robert E. Rubin, chairman of the executive committee of Citi and a member of the board of directors, will serve as chairman of the board. Sir Win Bischoff, chairman of Citi Europe and a member of Citi's Business Heads, Operating and Management Committees, will serve as acting CEO.
An emergency meeting was held this Sunday related to the future of the financial institution's leadership after it said it may write off $11 billion of subprime mortgage losses, in addition to a $6.5 billion write-down it reported last month.
Citi's board has designated a special committee consisting of Rubin, Alain J.P. Belda, Richard D. Parsons and Franklin A. Thomas to conduct the search for a new CEO.
According to a statement, Prince commented, "We have made strong progress in our strategy for building for the future, evidenced in the momentum we have achieved in most of our businesses. Nevertheless, it is my judgment that given the size of the recent losses in our mortgage- backed securities business, the only honorable course for me to take as chief executive officer is to step down. This is what I advised the Board."