The Five Dumbest Things on Wall Street This Week

2. Crowning Achievement

Citi (C Quote) chief Chuck Prince finally surrendered his throne.

Prince resigned Sunday as the big bank announced a massive writedown of mortgage-related assets. Citi said it faces as much as $11 billion in losses on subprime mortgage securities and collateralized debt obligations -- making it the biggest loser so far in the credit crunch that has swept Wall Street this year.

"Given the size of the recent losses in our mortgage-backed securities business," Prince said, "the only honorable course for me to take as chief executive officer is to step down."

Some might say the honorable course would have had Prince stepping down earlier. The bank's stock declined over his tenure, as rising expenses weighed on Citi's earnings. Prince, meanwhile, was busy becoming Wall Street's go-to guy for wrongheaded remarks.

Back in July, as the credit markets were grinding to a halt and losses were mounting on bank balance sheets, Prince told the Financial Times, "As long as the music is playing, you've got to get up and dance."

Then, last month, Citi surprised investors with the announcement that its third-quarter earnings would plunge 60% from a year ago -- due in part to trading losses that Prince lamely labeled an "aberration." The shortfall stunned Wall Street, particularly because Prince had earlier made a point of promising investors that 2007 was to be the year of "no excuses."

They'll have to make do with 2007 being the year of no more Chuck Prince.

Dumb-o-Meter score: 91. "I think you are looking for somebody who can effectively lead very large numbers of extremely capable people," Chairman Robert Rubin said, because Citi "has very large numbers of extremely capable people and as you know that takes a very special kind of leadership."