Rubin Exits Citi, as Bank Talks to Morgan

Updated from Friday, Jan. 9

Former Treasury Secretary Robert Rubin's departure at Citigroup (C Quote) could pave the way for more board members to leave, as the battered bank mulls the possible sale of its Smith Barney brokerage and other big changes.

Rubin has come under fire over the past two months for his role in encouraging the New York bank's foray into toxic debt that has laid waste to its balance sheet. The banks problems forced it to accept a $45 billion government bailout and left it contemplating a breakup of the financial supermarket model developed by former Chairman and CEO Sandy Weill a decade ago.

Reports surfaced late Friday that Citi is contemplating a sale of Smith Barney, its 11,000 financial adviser-strong brokerage. ...