'Whatever the gaps between the Fed’s expectations and our performance, we need to close them', Chief Executive Officer Michael Corbat said in a memo obtained by Bloomberg News. 'Gene is fully empowered to do whatever is necessary'.
McQuade, 65, takes over less than a month after the board of directors praised Chief Financial Officer John Gerspach and Brian Leach, the bank’s head of risk, for work on last year’s stress tests. The Fed objected to Citigroup’s 2014 submission two weeks later, blocking plans to quintuple the dividend and repurchase as much as $6.4bn of stock. The shares have tumbled 4.9% since then.
The new role for McQuade comes with the title of vice chairman, and he reports directly to Corbat, according to the firm. McQuade brings a strong understanding of regulatory matters, as well as internal controls, said Charles Peabody, an analyst at Portales Partners, who rates the shares underperform.
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