Three senior executives at Citigroup were forced to resign on Tuesday as Charles Prince, the firm's chief executive, delivered on a promise to improve the bank's sullied reputation in the aftermath of its private banking operations being shut down in Japan last month.
The three who resigned are Deryck Maughan, the chairman of Citigroup's extensive international operations; Thomas Jones, the head of the bank's asset management division; and Peter Scaturro, the chief executive of private banking.
All were members of the firm's management committee and their departures represent the most significant exodus of top executives since Prince succeeded Sanford Weill as chief executive a little more than a year ago.
The dismissals were announced in an internal e-mail message sent to Citigroup employees on Tuesday evening. The message stated that the asset management and private banking units would report immediately to Robert Willumstad, president and chief operating officer of Citigroup.
Last month, Citigroup was forced to close its private banking operations in Japan after regulators found that a lack of internal controls enabled certain employees to engage in fraudulent transactions.
Prince and the bank, already facing the prospect of suits from Enron creditors and charges of irregular bond trades in Britain, then hired Eugene Ludwig, a former comptroller of the currency at US Treasury to conduct an internal review of the matter.
According to a person briefed on the review, its conclusion was that Jones, Scaturro and Maughan should be held responsible for lack of oversight in Japan.
Jones, Scaturro and Maughan could not be reached for comment on Tuesday.
Although the closing of the bank's private banking operations in Japan will barely dent the bank's net profits, which were US$17 billion last year, the ignominy of the world's largest financial institution having its private bankers expelled from such an important market, together with the other regulatory lapses, has cast a pall over the bank.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source