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| Rumours over Citigroup boss mount | Rumours over Citigroup boss mount |
| (about 1 hour later) | |
| Citigroup boss Charles Prince looks set to resign as the bank prepares for an emergency board meeting, say reports. | Citigroup boss Charles Prince looks set to resign as the bank prepares for an emergency board meeting, say reports. |
| Investor calls for his resignation have increased since the bank reported a 57% drop in quarterly profits, after losses in the sub-prime mortgage market. | Investor calls for his resignation have increased since the bank reported a 57% drop in quarterly profits, after losses in the sub-prime mortgage market. |
| Citigroup, which declined to comment on the reports, is the latest firm to be hit by the credit crisis. | Citigroup, which declined to comment on the reports, is the latest firm to be hit by the credit crisis. |
| Merrill Lynch chief executive Stan O'Neill resigned on Tuesday after the firm reported heavy losses. | Merrill Lynch chief executive Stan O'Neill resigned on Tuesday after the firm reported heavy losses. |
| The latest spate of poor earnings from US banks have prompted concerns that the worst of the credit crisis may be yet to come. | The latest spate of poor earnings from US banks have prompted concerns that the worst of the credit crisis may be yet to come. |
| Speculation about the future of Citigroup has intensified since Friday, when the Wall Street Journal said the firm was set for an emergency meeting on Sunday, according to a source close to the situation. | Speculation about the future of Citigroup has intensified since Friday, when the Wall Street Journal said the firm was set for an emergency meeting on Sunday, according to a source close to the situation. |
| The firm's shares ended the week 2% lower by close of trade on Friday in New York, at $37.73. | The firm's shares ended the week 2% lower by close of trade on Friday in New York, at $37.73. |
| In the three months to the end of September, net income dropped to $2.38bn from $5.51bn a year earlier. | In the three months to the end of September, net income dropped to $2.38bn from $5.51bn a year earlier. |
| At the time of the results Mr Prince said: "A significant amount of our income decline was in our fixed-income business, where we have a long track record of strong earnings, and this quarter's performance was well below our expectations." | At the time of the results Mr Prince said: "A significant amount of our income decline was in our fixed-income business, where we have a long track record of strong earnings, and this quarter's performance was well below our expectations." |
| On 1 October, the firm - which has more than 300,000 staff worldwide including 12,000 in the UK - had projected a 60% drop in quarterly earnings. | |
| "This was a disappointing quarter, even in the context of the dislocations in the sub-prime mortgage and credit markets," said Mr Prince. | "This was a disappointing quarter, even in the context of the dislocations in the sub-prime mortgage and credit markets," said Mr Prince. |
| Wider problem | Wider problem |
| Before the weekend Deutsche Bank analyst Mike Mayo predicted that investment banks will need to write down a further $10bn in the last quarter of the year. | Before the weekend Deutsche Bank analyst Mike Mayo predicted that investment banks will need to write down a further $10bn in the last quarter of the year. |
| He forecast that Citigroup and Merrill would be hardest hit, seeing in the region of $4bn losses each. | He forecast that Citigroup and Merrill would be hardest hit, seeing in the region of $4bn losses each. |
| Meanwhile, James Cayne - the head of Bear Stearns - has also faced criticism after seeing huge losses stemming from problems in the sub-prime mortgage sector. | Meanwhile, James Cayne - the head of Bear Stearns - has also faced criticism after seeing huge losses stemming from problems in the sub-prime mortgage sector. |
| And it is not just US firms whose leaders have been under fire for a rise in bad debts. | And it is not just US firms whose leaders have been under fire for a rise in bad debts. |
| The UK's Northern Rock saw its chairman Matt Ridley resign recently after a run on the bank in September. |