The trauma of having your allowance withheld by the Federal Reserve is bad enough. What's worse is having the failure laid squarely at the feet of two top officials who you'll be sharing an elevator with for the foreseeable future.
Mike Corbat won't be making the same mistake next year.
Citigroup Inc., shocked by the Federal Reserve's rejection of its capital plan, is asking a top executive to delay his retirement to help repair the bank's relationships with regulators.
Chief Executive Michael Corbat told employees in a memo Thursday that Gene McQuade, 65 years old, would oversee the company's efforts to win Federal Reserve approval for its capital plans. Mr. McQuade was to step down as CEO of the Citibank subsidiary this month….
"Whatever the gaps between the Fed's expectations and our performance, we need to close them," Mr. Corbat wrote Thursday in the memo, which was reviewed by The Wall Street Journal. "Gene is fully empowered to do whatever is necessary, and I will devote any resource required, to ensure our next capital plan is not objected to."
The "stress test" process had been run by Chief Financial Officer John Gerspach and Brian Leach, head of franchise risk and strategy, but now people on their teams will report to Mr. McQuade for stress-test related matters.
Citigroup Taps McQuade to Run Stress-Test Process [WSJ]