Citigroup was forced to replace CFO

image According to the Financial Times, who cited parts of a confidential agreement it viewed, Citigroup Inc was under direct pressure from U.S. regulators to replace former chief financial officer Ned Kelly.

The paper reported that under a late-June agreement with the U.S. Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, Citigroup said it would consider whether to replace Kelly before October.

According to people familiar with the situation, Kelly tendered his resignation in July on hearing of the agreement. Kelly was made vice chairman focused on strategy and merger activity at Citi.

Huge losses at Citigroup have resulted in the U.S. government giving the bank $45 billion of taxpayer funds and taking a 34 % equity stake.

Last month, Citi declared its biggest management shake-up since the financial crisis began, replacing Kelly with John Gerspach and installing a new banking chief.

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