FDIC doubts positive conclusions about Citi’s management



image The US Federal Deposit Insurance Corp. officials were examining the positive conclusions given to Citigroup’s management team in a government-mandated review in impacts of the financial crisis.

Management skill is one of the factors used by regulators to determine financial-health ratings of US banks.

Though the review had positive conclusions about Citi’s top management, It was less favorable about two key members of Chief Executive Vikram Pandit’s team, Vice Chairman Lewis Kaden and Chief Administrative Officer Don Callahan.

The FDIC asked Citi to retain an unaffected company to perform its review, so the board gas chosen consultant Egon Zehnder International.

Skeptical reaction could affect the FDIC to give the report little weight during the next regulatory assessment of the New York firm’s management, while the findings are still being reviewed

ECJ




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