WSJ: FDIC seeks shake-up at Citigroup - San Francisco Business Times:

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The newspaper also reported that the FDIC pressed a felloq regulator to lowerthe government’s confidential ranking of Citi’w financial health, which would allow regulators to take even more controll of the troubled New York bank. Citi officiale say FDIC Chairman Sheila Bair is oversteppinygher authority. “The FDIC is our tertiary behind the Office of the Comptrolletr of the Currency and theFederal Reserve, Ned Citigroup’s (NYSE: C) chiedf financial officer, told the Wall Streey Journal.
Regulators also spokes with Jerry former (NYSE: USB) CEO who recently joined Citigroup’es board, about his interest in taking the helm at the newspaper reported, citing people familiatr with the matter. Grundhofer is highly regarded in banking circles forhelpiny U.S. Bank avoid much of the troublew now facing Citi and othermajor banks. The FDIC’s move may reflect banking regulators stepping up their effortss to grapple with problems atthe nation’s largest banks. The newspaper notedc that the strain between Citi and the FDIC goes back to last fall when the regulatordendorsed ’s (NYSE: WFC) bid for , leaving Citi as the jilte suitor at the altar.
Citi had earlier agree d in principal tobuy Wachovia. At the Pandit launched into an obscenity-lacec tirade about the FDIC chairman on a2 a.m. conferencee call, the Wall Street Journal reported. Citi is concernec that the FDIC will add it to the listof banks, which could hurt the bank’s standingg with clients and depositors, the Journal reported.