US regulators have forced Citigroup to hire external consultants to consider whether its current management is up to the job of leading the troubled bank out of the financial crisis in a decision that intensifies pressure on its top executives and board.
People close to the situation said Citi had retained Egon Zehnder, a headhunter and board advisory consultancy, to carry out an in-depth management review requested by the government after banks' stress tests in May.
The push for Citi to enlist external help, led by the Federal Deposit Insurance Corporation and backed by other regulators, underlines authorities' desire to keep Citi's upper echelons on a tight leash after rescuing the bank with $45bn.