Citi's Pandit may face FDIC-led shakeup
Government wants to move around top management, putting CEO at risk, according to published report.
NEW YORK (CNNMoney.com) -- The Federal Deposit Insurance Corp. wants to move around top management at Citigroup, putting Chief Executive Vikram Pandit in a precarious position, according to a report published Friday.
Under the leadership of Chairman Sheila Bair, the FDIC encouraged another government regulatory committee to downgrade Citigroup's confidential rating within the government, allowing the FDIC more control over the firm, according to the report in Friday's edition of The Wall Street Journal.
The FDIC declined comment to CNN.
Citigroup was one of the nation's 19 largest banks to undergo a "stress test," run by the government to measure the health of the nation's banking system.
Citigroup said Friday that the company has cut its expenses, raised capital and limited its exposure to risky assets.
"We are confident in our management and confident that we will continue to position Citi for a return to sustained profitability," said Dick Parsons, Chairman of the Board of Citigroup, in a written statement.