Citi Moves Sallie Out

But in recent months, investors on Wall Street had soured on Krawcheck, blaming her for the bank's runaway expenses. The problems at Citigroup have led some to argue that Prince should also go because the bank's stock has lagged those of its competitors.

The move by Prince is an acknowledgment that the experiment with Krawcheck didn't work. It's also one more attempt by Prince to buy himself some time and appease his critics.

Last month Prince named Robert Druskin as chief operating officer. The popular investment banker is being given a free hand to come up with a plan for cutting costs at Citigroup.

Shares of Citigroup have rallied since the Druskin appointment.

Krawcheck, no doubt, will be warmly welcomed back as the head of Citigroup's brokerage group. People close to the group say that many were saddened when Krawcheck moved on to CFO.