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Citigroup Chief Executive to Take On Additional Role of Chairman

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From Reuters

Cementing his power atop the largest U.S. bank, Citigroup Inc. Chief Executive Charles Prince will take on the additional role of chairman, replacing Sanford “Sandy” Weill, who will become chairman emeritus.

The retirement of Weill, perhaps Wall Street’s foremost deal maker, is effective at New York-based Citigroup’s April 18 annual meeting.

Prince, 56, had replaced Weill, who turned 73 Thursday, as CEO 2 1/2 years ago.

Prince’s reign has been marked by the cleanup of ethical and regulatory problems, the departure of several top executives, concern over growth prospects and a share price that has trailed many of Citigroup’s peers’.

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“Prince is going to be around awhile and has solidified his role with the board,” said Ralph Cole, who helps invest $2.3 billion at Ferguson, Wellman Capital Management. “My biggest concern is that while he has improved governance, that hasn’t translated to improved earnings or growth, or a higher share price.”

Citigroup last year posted a $19.8-billion profit from continuing operations, but revenue grew just 5%. The bank’s shares have risen just 4% under Prince, lagging behind the 23% in the well-known KBW bank index.

Weill created Citigroup in 1998 when his Travelers Group merged with Citicorp. It was not immediately clear what he planned to do next.

Citigroup’s shares closed down 18 cents at $47.22.

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