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(Updates story with current stock price.)

NEW YORK (

TheStreet

) -- When

Citigroup

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removed CFO Ned Kelly in July after fewer than four months on the job, the bank claimed the move was solely its own, and was not done at the behest of federal regulators.

Conventional wisdom on the Street held otherwise.

Today, a report in the Financial Times appears to confirm the speculation of investors, citing a confidential agreement between federal regulators and Citigroup that the chief financial officer would be ousted.

The document, according to the FT, "emphasizes the extend of the autorities' involvement in the internal workings of Citi."

In May, Citigroup completed the "stress test" that federal regulators administered to Citigroup,

Bank of America

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,

Wells Fargo

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,

JPMorgan Chase

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and 15 other financial institution. Two months later, Citigroup completed a $58 billion stock swap, ceding a 34% ownership stake to the government.

According to multiple reports last week, federal officials are also pressuring Citigroup to hire external consultants who will evaluate whether the bank's current management is capable of leading it out of financial crisis.

Citigroup, like other national banks, has been undergoing major management changes in recent months, adding new directors and replacing key executives.

Former CFO Gary Crittenden left the company last month, while the head of its Asia Pacific division, Ajay Banga, left in June.

Shares in the company, which closed at $4.14 Tuesday after gaining 14 cents during the trading session, were down 12 cents in pre-market trading Wednesday morning. Since the market open this morning, they have gained that back, changing hands in mid-afternoon trading at $4.16.

-- Written by Ty Wenger in New York

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