Citi (C) Told To Hire External Consultants

US regulators have forced Citigroup (NYSE: C) to hire external consultants to consider whether its current management is up to the job of leading Citi out of the financial crisis, according to the Financial Times. This decision by the regulators puts more pressure on Citi's top executives and board to get things in order in the most expeditious manner.

The FT said that Citi has retained Egon Zehnder, a headhunter and board advisory consultancy, to carry out an in-depth management review requested by the government after banks' stress tests in May.

The push for Citi to enlist external help, led by the FDIC and backed by other regulators, underscores the authorities' desire to keep Citi's upper management on a tight leash after giving it over $45 billion.

In recent months, Citi has added eight new directors and replaced its finance chief. But, the hiring of the external consultant will cause investors to continue to question the long-term future of Vikram Pandit as Citi's CEO.

After the stress tests, regulators said the 10 banks that were found to need more capital had to review their management's "expertise and ability to manage the risks presented by the current economic environment".
Sign up at EasyStockAlerts for free to see your stock news before it breaks to the rest of the public!

You May Also Be Interested In

• Housing shortages in Germany 'likely to intensify' says Citi
• Citi on Altria (MO): '$3.4bn buyback should provide technical support and limit absolute downside'
• Citi Positive on Lululemon Athletica Inc. (LULU) Following C-Suite Meeting