The subprime mortgage fallout continues

News today that Citigroup will have an $8 to $11 billion write-down (in addition to a $5.9 billion write-down in October) comes in quick succession...

News today that Citigroup will have an $8 to $11 billion write-down (in addition to a $5.9 billion write-down in October) comes in quick succession to yesterday's news that Citi's chief, Charles O. Prince III, has stepped down. Robert Rubin, former US Treasury secretary, has been named chairman and the bank's board has begun looking for new CEO. Winfried Binschoff, head of Citi Europe, is the interim chief.

The New York Times writes about investor concerns (it's gotten too big to manage) and internal issues that have caused the bank problems. The Wall Street Journal discusses other issues of internal cohesiveness such as bond traders still using the Salomon name that was dropped years ago and the inability to form "One Citi," along with a laundry list of other problems the bank has faced on the inside. It sounds as though communicating the way forward internally will be just as critical as maintaining ongoing discussion with investors and the financial community.

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