Citigroup shakes up top management

By Jonathan Stempel

NEW YORK (Reuters) - Citigroup (C.N) on Thursday announced its biggest management shake-up since the financial crisis began, replacing its chief financial officer and installing a new banking chief as it prepares to give the government a 34 percent equity stake.

The revolving door that Citigroup's upper management has become spun again amid intense pressure on Chief Executive Vikram Pandit to improve performance, add consumer banking experience in the senior ranks, and shed toxic or unwanted assets at the third-largest U.S. bank by assets.

"It has been a long time coming," said Christopher Whalen, a managing director at Institutional Risk Analytics in Torrance, California, referring to the management shuffle. "The government controls the bank."

Edward "Ned" Kelly, who became CFO in March and is a former CEO of Maryland's Mercantile Bankshares Corp, was promoted to vice chairman focussed on strategy and merger activity.

The new CFO is John Gerspach, the bank's controller and chief accounting officer. Gerspach is the fifth CFO in five years.

Eugene McQuade was named chief executive of Citigroup's Citibank unit. He was previously vice chairman of Merrill Lynch, chief operating officer of mortgage financier Freddie Mac (FRE.P) and president of Bank of America (BAC.N).

McQuade succeeds William Rhodes, a senior vice chairman who will reduce his day-to-day responsibilities to focus on international operations, his specialty. Citigroup is based in New York but operates in more than 100 countries.

Separately, Gary Crittenden, chairman of Citi Holdings, which includes businesses that Citigroup wants to sell or wind down, will leave the bank and move to Utah to focus on family and business interests. He preceded Kelly as CFO.