Just weeks before the surprise departure of Citi CFO Ned Kelly, US regulators put direct pressure on Citigroup to oust him.
In July, Kelly left after fewer than four months on the job. Now it looks like he may have been forced out by the government.
The Financial Times has uncovered a confidential agreement that sharply contrasts with earlier accounts of Kelly’s departure. The agreement was put in place in late June between Citi and its regulators–the Fed, The OCC and the FDIC. In it, Citi agreed to consider removing its CFO before October.
“Citigroup will initiate a process that will result in a decision on (a) whether the CFO for Citigroup…can be more effectively utilised in other Citigroup responsibilities,” the agreement states. “And (b) if so, on replacements by a person…with relevant financial, accounting or other experience acceptable to the agencies, with the results publicly announced by…publication of Citigroup’s third quarter 2009 earnings [in October].”
Apparently Kelly resigned on hearing of the agreement. The writing was on the wall.
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