Robert Rubin, perhaps the most maligned Citi board member, is leaving, says WSJ. Citigroup has since confirmed that Rubin will not stand for re-election and that he’ll end his day-to-day involvement effective today. CEO Vikram Pandit says Rubin’s contribution to Citi was “invaluable.” They have to say stuff like that.
Why has he been pilloried? For taking in over $100 million during his tenure there, while contributing very little, other than encouraging the bank to lever up.
In November, the NYT ran an absolutely devasting piece on the collapse of Citi and the extent to which Rubin was in the loop on key decisions
WSJ: While Mr. Rubin has defended his performance since joining Citigroup in 1999, insisting that the bank’s problems were due to wider turmoil in the financial system, not failures by Citigroup, he is “tired of it,” a person familiar with the matter said. Mr. Rubin now wants to focus instead on his non-profit work and other outside interests.
The exit of Mr. Rubin likely will do little to ease the questions swirling around Citigroup, now just the fifth-largest U.S.-based bank as measured in stock-market value. Since late 2006, Citigroup’s share price has plunged nearly 90%. On Friday, the stock was down more than 5% in recent New York Stock Exchange composite trading.
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