Citigroup shakes up top management

Citigroup shook up its management yesterday, replacing its finance chief and installing a new head of banking. It comes as the embattled bank prepares to hand the US government a 34 per cent stake in the company.

Edward Kelly, who was named chief financial officer in March, will become a vice-chairman focused on strategy and merger activity. His replacement, John Gerspach, had been Citigroup's controller and chief accounting officer and is the company's fifth chief financial officer in five years.

Eugene McQuade has been made chief executive of the key Citibank unit. He was recently a vice-chairman of Merrill Lynch.

Mr McQuade takes over from Bill Rhodes, a Citigroup senior vice-chairman, who will reduce his day-to-day responsibilities to focus on international operations.

Gary Crittenden, chairman of Citi Holdings, which includes businesses the company wants to sell or wind down, is leaving.

Citigroup has lost $36bn (£22bn) in six quarters. Vikram Pandit, the chief executive who is under pressure to improve the bank's performance, said the appointments would "help position the company for the future".