Chuck Prince quit as chairman and chief executive of Citigroup on Sunday night as the company revealed it was facing between $8bn and $11bn of further losses on its holdings of mortgage-related securities. Mr Prince said that in the light of the losses stepping down was “the only honourable course”. Robert Rubin, the former US Treasury secretary who will take over as chairman, said: “There are no plans to cut the dividend.” Sir Win Bischoff, former head of Schroders and now chairman of Citi Europe, will serve as interim chief executive. The latest bad turn in the credit turmoil was, in Mr Prince’s case, coupled with a serious erosion of good will, notes Lex. Diversification may not have been the boon it should theoretically be, but that does not make a Citi split the next obvious thing to do. Visit FT Alphaville on Monday for a comprehensive look at the Citi saga.
