Mayo Says 'Sell Citi'

Deutsche Bank analyst Mike Mayo slashed his rating on Citigroup(C Quote) to sell after the bank's latest executive shakeup.

Late Thursday, Citi named Vikram Pandit CEO of its Institutional Clients Group -- a newly formed unit encompassing Citi's Markets & Banking and Alternative Investments businesses. Thomas Maheras, a 23-year veteran of Citi and the co-chief executive of its Markets & Banking businesses, is leaving the firm to pursue other interests, Citi said. He will be replaced by James Forese, the current head of Global Equities.

The management changes come less than two weeks after Citi announced that third-quarter earnings would plummet 60% from a year ago, due largely to a $3.3 billion hit tied to writedowns in mortgage securities and leveraged buyout debt. But Mayo wasn't impressed by Thursday's moves, arguing that the shakeup didn't go far enough. ...