Sunday, November 4, 2007
Citigroup CEO Charles Prince's job has been on the line for weeks, so the (expected) news of his resignation is not a surprise. But billions of dollars in additional write-downs on mortgage-related securities? When the tech stock bubble burst, judges and academics were ruthless in their criticism of retail investors' failure to understand the principle of "high return, high risk." Now it seems that Citigroup management was equally clueless. It remains to be seen what, if anything, will be the consequences of their failure to understand this fundamental principle of investing. Is this protected as "business judgment?" WSJ, Charles Prince Resigns As Citi CEO, Chairman.