Updated from 8:30 a.m.Citi ( C) shares continued to swoon Monday in spite of a long-awaited management change. CEO Chuck Prince resigned late Sunday, giving way to Bob Rubin as chairman and former Schroders chief Win Bischoff as interim CEO. The news of Prince's departure was expected after rumors started swirling Friday that Citi's board was planning an emergency meeting this weekend. But while investors will surely be pleased that Prince's four-year reign is over, they aren't happy about what finally pushed him out. Citi said it would take writedowns of $8 billion to $11 billion to cover additional losses on mortgage-backed securities and collateralized debt obligations. A writedown of that magnitude would make Citi Wall Street's biggest loser, at least so far, on this year's collapse of the markets for risky paper. Merrill Lynch ( MER) last week ousted CEO Stan O'Neal after the firm posted a $7.9 billion writedown on CDOs and subprime mortgages.
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