Citigroup Shares Open Higher in Tokyo as Prince Exits

Citigroup Inc., the largest U.S. bank, rose on its first day of trading in Tokyo as Chief Executive Officer Charles Prince resigned to take responsibility for losses stemming from U.S. mortgage defaults.

The bank's shares closed 220 yen, or 5.1 percent, higher at 4,550 yen ($40) after rising as much as 4,580 yen. About 10,000 shares were traded compared with 138.7 million in New York on Nov. 2 when the stock slumped to a four-year low.

The listing comes as Prince resigned following a 57 percent decline in third-quarter profit on writedowns related to defaults on U.S. mortgages and a 32 percent slide in the share price in 2007. The U.S. bank listed in Tokyo after buying Nikko Cordial Corp., Japan's third-largest brokerage, this year.

``It's hard to be optimistic on the business outlook despite the strength we're seeing in the stock today,'' said Naoki Fujiwara, who helps oversee $3.2 billion at Shinkin Asset Management Co. in Tokyo. ``The direct impact of subprime problems seems to be fading but they have yet to deal with ripple effects from the turmoil.''

Sir Win Bischoff is interim chief executive until Prince's replacement is found and former Treasury Secretary Robert E. Rubin has been named chairman, New York-based Citigroup said in a statement today. The bank canceled a scheduled press conference in Tokyo today.
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