Citigroup Shakeup Never Comes

NEW YORK (TheStreet) -- Things have been oddly quiet at Citigroup (C) since details of a report by consultant Egon Zehnder were leaked to the press on October 8.

The report, which was ordered by Federal bank regulators as part of an evaluation of the company's management, was positive in its assessment of Citi Chairman and CEO Vikram Pandit, but was critical of Terri Dial, a former Wells Fargo (WFC)and Lloyds Banking Group (LYG) executive who is head of Citi's consumer bank, according to reports in the Financial Times and other media outlets.

Vice Chairman Lew Kaden and Chief Administrative Officer Don Callahan also reportedly came in for criticism in the consultant's evaluation. Spokespeople for Citi and Egon Zehnder declined to comment. Calls to Callahan and Kaden were not returned. Dial could not be reached.

The report was not supposed to be public, and according to the Wall Street Journal, it was printed on paper that could not be photocopied and was not distributed electronically. Still, details of its findings appeared in at least three newspapers: the Financial Times, the Wall Street Journal and the New York Post, the morning of Oct. 8.

The following day, the Journal followed up with another anonymously-sourced story saying the Federal Deposit Insurance Corp. was "questioning the generally positive conclusions" and "expressed doubts about the rigor of the report." FDIC Chairman Sheila Bair has been at odds with Pandit, a former Morgan Stanley (MS) executive who joined Citi in 2007, at least since the regulator awarded Wachovia to Wells Fargo after Citi appeared to have locked up a deal for the failed institution. An FDIC spokesman did not respond to an e-mail message.