Citi Board Deals With 'Too Much Homework' Problem

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The House of Corbat has two new board members to handle various administrative things. Backup. Whatever.

Citigroup Inc. named former General Electric Co. Chief Information Officer Gary Reiner and former Ernst & Young Chairman and Chief Executive James Turley to its board of directors….

Mr. Turley, 57 years old, retired from Ernst & Young last month after a 36-year career with the firm, the last 12 years as chairman and CEO. He steered Ernst & Young through a volatile period in accounting, including the Enron Corp. scandal, the passage of the Sarbanes-Oxley Act and the creation of the Public Company Accounting Oversight Board to regulate the industry, and the move to attempt to standardize accounting rules around the world….

Mr. Turley will join the board's audit committee….

Mr. O'Neill said Mr. Reiner, 58, "will lend his expertise to key priorities across the company including increasing productivity and helping to oversee important initiatives in our Operations and Technology function." He didn't say which board committee Mr. Reiner will be joining.

Mr. Reiner was a close lieutenant of GE CEO Jack Welch. Mr. Reiner left the conglomerate in 2010. Before joining GE in 1991, he was a partner at the Boston Consulting Group Inc.

And now that the preliminaries are out of the way, let's tear'em down.

The firm faced regulatory challenges under Mr. Turley's watch, notably a 2010 civil lawsuit from the New York attorney general's office alleging that Ernst & Young turned a blind eye to accounting abuses at its client Lehman Brothers Holdings Inc. before Lehman's 2008 collapse.

The firm denied any wrongdoing, and last December a judge ruled that New York couldn't recover the $150 million in fees that Lehman paid to Ernst & Young, as the state was attempting.

Mr. Turley is also on the executive board of the Boy Scouts of America and has supported the move to change the organization's policy to allow for participation by gay youths and Scout leaders.

Citigroup Expands Its Board [WSJ]

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