Rubin retires from Citi

JAN 09, 2009
Former Treasury secretary Robert E. Rubin is retiring from his post as senior counselor at Citigroup Inc., although he will continue to serve as a director until his term ends in the spring. Since the start of the credit crisis, Citigroup has taken $67 billion in write-offs. Mr. Rubin contends that the bank's problems reflect wider turmoil in the financial system, rather than poor management at Citigroup of New York, according to The Wall Street Journal. "This is not a decision that I have come to lightly," Mr. Rubin said in a statement. "But as I enter my 70s and with all that is now in place at Citi, I believe the time has come for me to make these changes." In late 2004 and early 2005, Mr. Rubin was one of the people who decided the bank should take on more risk to boost lagging profits, according to people familiar with the discussions. In addition, he played a major role in Vikram Pandit’s appointment as Citigroup's chief executive in December 2007, following the ouster of Charles O. Prince. "Bob has made invaluable contributions to the company," Mr. Pandit said in a statement. "He has also been a trusted advisor to senior management as well as to me personally, and I am pleased to say Bob has agreed to continue to be available as a sounding board and resource for me and for the company." Mr. Rubin joined Citigroup in 1999, following his stint as Treasury secretary in the Clinton administration. A Citigroup spokesman was not immediately available for comment.

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