Finance

Citigroup Chairman & Former Economic Adviser to the President’s Transition Team Steps Down

Citigroup Chairman & Former Economic Adviser to the President’s Transition Team Steps DownPresident Obama greets Richard Parsons, former chairman of the board of Citigroup Inc.

NEW YORK (AP/The Blaze) — Richard Parsons, who was named chairman of Citigroup in 2009 just after the bank accepted $45 billion in federal bailouts, will step down from the position, the bank said Friday.

The bank said Michael O’Neill, a Citi board member and the former CEO of Bank of Hawaii Corp., was expected to succeed Parsons. The Citi board will elect a chairman at the bank’s annual shareholder meeting in April.

Parsons, 63, the former CEO of Time Warner, has a reputation as a “skilled negotiator, diplomat and crisis manager and is one of the most prominent black executives in corporate America,” according to the Associated Press.

When he was named chairman, in January 2009, the Citi board faced intense criticism for having invested so heavily in the housing market. Some analysts on Wall Street saw Parson’s chairmanship as a continuation of the same supervisory lapses from the board.

Parsons was also an economic adviser on President Barack Obama’s transition team, and others saw it as a sign that Citi needed his diplomatic skills at a time when the government had become the bank’s largest shareholder.

Citi, the country’s third-largest bank by assets, was the last major bank to repay bailout loans after the financial crisis. It made $11.3 billion last year after losing a combined $40 billion in 2008 and 2009. The government sold the last of its stake in the bank in 2010.

In a statement, Parsons said the bank “still faces a challenging environment, as do all the large banks, but the crisis is behind us.“ CEO Vikram Pandit said the bank had returned to ”a position of strength among its peers” under Parsons’ stewardship.

Parsons’ departure had been expected on Wall Street. Citi stock, which lost 3 cents Friday to close at $34.10, lost an additional 6 cents in after-hours trading.

Parsons worked in the White House under President Gerald Ford. He was rumored as a potential candidate to succeed New York Mayor Michael Bloomberg, before Bloomberg sought and was elected to a third term in 2009, but declined to run.

Two other Citi board members are also leaving.

The Associated Press contributed to this report.

(H/T: Fox News Insider)

Comments (19)

  • rukdnme13
    Posted on March 3, 2012 at 3:33pm

    I suspect Mr. Parsons didn’t really understand fractional reserve banking!! :-)

    Report Post »  
  • janmil200
    Posted on March 3, 2012 at 3:03pm

    Wondering if this could somehow be related to a story just yesterday about mass resignations of major banking figures all around the world in the last couple of weeks, with 115 of them being just yesterday.

    Report Post »  
  • PIGSWILLNEVERFLY
    Posted on March 3, 2012 at 8:37am

    Like rats on a sinking ship. remember Jimmy Falon joke Oct 2011. “Did you see yesterday O’bomb-a had beer with 4 unemployed construction workers? Obomba asked the guys, “ ”Like, what’s it like losing you jobs?” and they said, “Oh, you’ll see”.

    Report Post » PIGSWILLNEVERFLY  
  • foxrocks
    Posted on March 2, 2012 at 11:31pm

    They are all bailing out, who would have thought there were so many unqualified people, but Obama picked em all. That’s what you get with a man in office with no experience except for a community organizer……..just his buds from chi town, and you can bet that vote early vote often will happen again unless picture I.D is approved……States do it on your own, Holder can sue later, but oops when he is done this year…………then we can put him in jail for treason for giving drug cartels access to weapons that KILLED AN AMERICAN DEFENDING OUR BORDERS!!!!!!!!!!!!!!!!!!!!

    Report Post »  
    • robert
      Posted on March 3, 2012 at 9:32am

      “Parsons, 63, the former CEO of Time Warner, has a reputation as a “skilled negotiator, diplomat and crisis manager and is one of the most prominent black executives in corporate America,” according to the Associated Press.”

      This is just one example of the big money fat cats sobering up some clown from the labor pool and putting him at the top in order to deflect criticism for management being “too white,” hoping the ruse will clean up their image a bit so they can continue to reap unjust, outrageous bonuses and profits. I‘m willing to bet he couldn’t pass a GED test on the high school level.

      It has all been coming down now and will continue to implode.

      Report Post »  
  • 1947
    Posted on March 2, 2012 at 10:48pm

    is he BLACK….. ?

    Report Post »  
  • TheCoffinMaker
    Posted on March 2, 2012 at 10:40pm

    He got his share of the booty and now it’s time to boogie.

    Report Post » TheCoffinMaker  
  • DIVINEPROVIDENCE1776
    Posted on March 2, 2012 at 10:37pm

    Good riddance crony capitalist.

    Report Post » DIVINEPROVIDENCE1776  
  • christos
    Posted on March 2, 2012 at 10:29pm

    …Wasn’t city bank one of the banks tied to the Holocaust…

    Report Post » christos  
  • SlyFox123
    Posted on March 2, 2012 at 9:03pm

    Well, hummmmmmmmmmmmmmm, what this all about? Again, things are looking GOOD!. So damm good that the [rats are exiting the ship], and boys I can’t blame ya. He’s going to stick it to ya, watch and see, it’s coming…..this man lies!.

    Report Post »  
  • Baddoggy
    Posted on March 2, 2012 at 8:56pm

    Dont let the door hit you in the a@@….

    Report Post » Baddoggy  
  • cookcountypatriot
    Posted on March 2, 2012 at 7:37pm

    looks like a take the money and run scenerio

    Report Post » cookcountypatriot  
  • TruthDetection
    Posted on March 2, 2012 at 7:33pm

    And another domino falls…I‘m surprised Franklin Raines doesn’t take over. God, what a disgusting mess Obama is.

    Report Post »  
  • BurntHills
    Posted on March 2, 2012 at 7:11pm

    that rabid animal obama already paid him his billion, why should he stay.

    Report Post » BurntHills  

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love