Citigroup Inc chief executive Vikram Pandit has resigned, effectively immediately, a shock change at the top of the bank just one day after surprisingly strong quarterly results.

A statement yesterday from chairman Michael O’Neill said Michael Corbat, previously chief executive for Europe, Middle East and Africa, would succeed Pandit as CEO and become a board member.

Chief operating officer John Havens, a long-time associate of Pandit, also resigned.

Pandit’s departure follows a series of high-profile defeats this year. In March the Federal Reserve rejected Citigroup’s capital plans after a stress test. Pandit had led analysts and investors to believe the dividend-raising plans would be approved.

Just last month, Pandit agreed to a low sale price for his bank’s stake in the brokerage operated by Morgan Stanley. Citigroup took a $4.7 billion charge in the third quarter to write down the value of that stake. Citigroup shares fell 2.4 per cent to $35.77 in premarket trading yesterday.

The shares rose sharply on Monday after the bank reported quarterly results that were much better than analysts expected.

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