Dear Board of Directors at Citigroup,
24/7 Wall St. has made no secret since early December 2006 that Chuck Prince needs to go. Mr. Prince is not incompetent and he is not a crook, at least not at all from what we have been told by industry insiders and outsiders alike. He was the right man for the time when Sandy Weil’s regulatory mess had to be cleaned up.
But we have read and heard from numerous sources that you are considering Bob Rubin as the possible replacement if Chuck Prince is truly resigning Sunday. We strongly urge caution against this placement as anything other than interim. Rubin might be an incredible interim Chairman, but he cannot be considered a permanent fix. The chances are great that he may end up being dragged into being another financial advisor to the President-elect starting in 2009 and this could leave Citigroup somewhat vulnerable if Rubin is named as the full replacement.
We at 24/7 Wall St. take no joy nor do we take credit for any victory laps over a fired CEO. Chuck Prince was the perfect man for an interim job at the time, even though we at 24/7 Wall St. said he had to go last year. Do not make the same mistake by appointing Rubin as supreme commander, and if you do please do not make it anything more than "interim" for posterity purposes.
The officers of 24/7 Wall St. do not own securities in Citigroup. But Citi is a DJIA component and we do want to see the integrity lost in the company as it such a powerful mechanism.
Wall Street at this point is willing to tolerate a "throw in the towel and throw in the kitchen sink" report along with Mr. Prince’s ouster. Once again, we mean no disrespect to Mr. Prince nor to Mr. Rubin. They were appropriate for a time but the best case scenario is for Citigroup to promote either from within or to hire the best gun in town to be sheriff. You have the budget and this is your opportunity to shine. At this point you do NOT have to commit to anything permanent, not yet anyhow.
Please don’t make the same mistake thrice. Your shareholders will greatly appreciate it and benefit from it.
Jon C. Ogg & Douglas A. McIntyre
24/7 Wall St.
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