John Thain to Head Citi?

Citigroup has called an emergency board meeting for Nov. 4, giving rise to speculation that current CEO Chuck Prince is on his way out

John Thain talking with reporters Oct. 3, 2006, at the Foreign Press Center in New York Don Emmert/AFP/Getty Images

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By Steve Rosenbush and Lauren Young

November 3, 2007 at 1:57 AM UTC

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The board of directors at Citigroup (C) has called an emergency meeting for Nov. 4, according to one source close to the company, raising questions about the future of Charles Prince III, the financial giant's embattled chief executive. Prince has been under fire over Citi's financial performance in the midst of a brutal credit crunch, and the company's shares have tumbled, dropping nearly 7% on Nov. 1 (BusinessWeek.com, 11/1/07) and another 2% on Nov. 2, to a new 52-week low of 37.73.

Citi declined to comment on the news. But investors wasted no time in pushing up Citi's stock in after-hours trading on Nov. 2, in hopes that a new chief executive will turn around the company's flagging fortunes. "If Chuck Prince gets fired, it is like having a call option on this thing," says Charlie Smith, lead manager at the Ford Pitt Capital Total Return Fund, which owns Citi shares. "Prince has been spending money like crazy on acquisitions in the past three years, and he doesn't have much to show for it. The board has great cause here to kick him out."