Regulators press Citigroup to replace its chairman

The issue gained new urgency on Friday when Citigroup,under pressure from regulators,took a step toward breaking itself apart with a plan to spin off Smith Barney into a joint venture with Morgan Stanley. That news coincided with an announcement that Robert E Rubin,the former Treasury secretary and an influential Citigroup director,would resign.

Given the turmoil at Citigroup,many analysts and even some Citigroup insiders wonder whether the companys chief executive,Vikram S Pandit,can hold on to his job. While Citigroup insists that Pandit has the full backing of the board,some members have privately expressed some frustration with his leadership. Pandit lost a crucial ally with the departure of Rubin,who championed his selection as chief executive.

But the banks regulators expressed measured confidence that Pandit and his team could succeed,according to people briefed on the situation,and Pandits position appears secure for now.

And Parsons,in an interview Sunday,said Citigroups board was behind the chief.