WSJ is reporting that Citigroup is holding an emergency board meeting this
weekend, and that Chuck Prince’s ouster might be on the agenda:
It wasn’t clear precisely what the meeting would address, but the subject
of further writedowns could come up. The board may also consider the future
of Chief Executive Charles Prince, according to people close to the company.
Robert Rubin, the former Treasury secretary who is the chairman of Citigroup’s
executive committee, is being considered as a possible interim replacement,
but he has balked at taking on the responsibility, those people said.
There’s really very little that Rubin would gain from taking on the job. His
reputation is ironclad right now, and he hardly needs the money: the downside
would be vastly greater than the upside.
Instead, if Prince is ousted and the board wants either a temporary or a permanent
CEO, they might end up choosing Manuel
Medina-Mora, the man who took Banamex public and eventually sold it to Citigroup
as the largest and most successful bank in Mexico. The guy has a proven track
record of running a commercial bank, which is more than any of the other potential
candidates can say, and he’s been a senior Citigroup executive for long enough
now that he must know the company reasonably well.
Update: The WSJ now reports that Prince will
resign on Sunday, jumping before he is pushed.