Citi's Pandit may face FDIC-led shakeup

Government wants to move around top management, putting CEO at risk, according to published report.

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Citigroup CEO Vikram Pandit
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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.

Financial giant Citigroup (C, Fortune 500) has received approximately $45 billion in government bailout funds as part of the Troubled Asset Relief Program, or TARP.

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.

Friday is Citigroup's final day as a component of the Dow Jones industrial average. It will be replaced Monday by insurer Travelers Corp. (TRV, Fortune 500)

Citi shares fell 5 cents to $3.52 in early Friday trading. To top of page

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