Citigroup celebrated Britain's Guy Fawkes Day, November 5th, by practicing its own brand of regentcide in accepting the resignation of the Prince of Citi, Charles Prince III. This is a move that most consider 15 points to the downside overdue.
As Citi's mortgage losses continue to mount Mr. Prince decided that offering his resignation was the only honorable thing to do. Of course competence would have been preferable but it is too late for that.
There has been speculation by some analysts that Citi will have to cut its dividend. I doubt if that will happen. Citi simply has too many assorted assets that Mr. Price acquired during his tenure that could be sold to boost the balance sheet if it was truly necessary, though no longer at top dollar.
My best wishes to Mr. Rubin, who is now in charge. But wait, wasn't Mr. Rubin fiddling while Citi burned? I guess Mr. Rubin is just the least bad choice.
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