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Citicorp: Cleaned Up But Falling Behind

Investors are carping about Citicorp's slow recovery. Can Chuck Prince pick up the pace?

Citigroup (C ) investors aren't the only ones who are impatient with a stock that's going nowhere fast and a new investment strategy that has yet to pay off. "Get in line," quipped CEO Charles "Chuck" Prince, in an interview with BusinessWeek on Oct. 4. "It's not as good as I want it to be either."

Prince has faced one crisis after another during his three-year reign, from run-ins with regulators on three continents to shareholder lawsuits over Enron and WorldCom. And the Federal Reserve tied his hands, forbidding all acquisitions until he cleaned house. That's all behind him now. But he's not home free. And Prince is facing his biggest crisis ever -- one of confidence in his leadership and his ability to steer a trillion-dollar empire toward desperately needed new growth. Profits have fallen short of analysts' estimates in four out of the last five quarters, and the stock has been stagnant for about three years.