Industry News

Subprime crisis claims another Wall Street exec

Citigroup CEO steps down; company says up to $11 billion in losses may be coming

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The chief executive of Citigroup Inc. stepped down Sunday, the second Wall Street CEO in a week to leave his post as the subprime mortgage crisis continues to cause problems at major firms. The nation's largest banking company also said it would write off $8 billion to $11 billion in additional mortgage-related losses. Citigroup's board of directors on Sunday appointed Robert E. Rubin, the current head of its executive committee, to serve as chairman of the board. Win Bischoff will serve as acting CEO. The company's former chairman and CEO Charles Prince announced his resignation during an emergency board meeting Sunday. "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," Prince said in a statement. Wall Street investors profited from mortgage-backed securities during the housing boom, but began to see problems as many of the securities -- especially those backed by subpri...