WASHINGTON, Nov 4, 2007 (AFP) – The world’s biggest bank Citigroup named ex-US Treasury chief Robert Rubin as its new chairman Sunday, replacing Charles Prince who retired as it posted massive losses from the subprime mortgage crisis.
“It is my judgment that given the size of the recent losses in our mortgage-backed securities business, the only honorable course for me to take as chief executive officer is to step down,” said Prince, who was also chairman, in a company statement.
The company meanwhile announced losses worth up to 11 billion dollars — massively higher than the 2.2 billion it had reported for the third quarter in September.
“Citi estimates that, at the present time, the reduction in revenues attributable to these (sub-prime related) declines ranges from approximately eight billion to 11 billion dollars,” it said in a separate statement.
This represents a decline of around five to seven billion dollars in net income after tax, it said.
Rubin, the influential chairman of the company’s executive committee, was named the new overall chairman, while Sir Win Bischoff, chairman of Citi Europe, will become interim chief executive, the company said.
Named head of the Treasury in 1995, Rubin earned