Recruiting in China

CITIGROUP Inc replaced David Bushnell as chief risk officer, two weeks after the largest United States bank said writedowns on mortgage-related investments may lead to its first quarterly loss since at least 1998.

Jorge Bermudez, 56, whose 30-year career at Citigroup includes experience in risk management and operations, takes over for Bushnell effective immediately, the New York-based bank said in a statement. Bushnell, 53, a 22-year veteran who also serves as chief administrative officer, will retire on December 31.

Bushnell is at least the fifth executive to be forced out or reassigned at Citigroup as this year's credit-market turmoil in the US ravaged the bank's investments in subprime mortgages and related bonds. The company's board ousted Chief Executive Officer Charles Prince on November 4, three weeks after Prince himself replaced three top trading executives.

"They're addressing a situation that should have been addressed two years ago," William Smith, who manages about US$80 million, including 71,000 Citigroup shares as president of Smith Asset Management, told Bloomberg News. "Heads have to roll, and Bushnell's head was next to roll."

The company's stock has tumbled 39 percent this year.

Citigroup said earlier this month bad subprime investments might result in as much as US$11 billion of writedowns this quarter. The losses are on top of US$3.15 billion of writedowns on subprime mortgages and leveraged loans reported for the fourth quarter.