Citi replaces chairman

Bischoff took over as acting chief executive in November 2007 when Charles Prince, former chairman and chief executive, resigned amid announcements of the bank's multi-billion-dollar writedowns on credit products. Bischoff subsequently held the role of chairman from December 2007. He said that at the time of accepting these roles he understood that these positions would be for a limited period of time until successors were named.

Bischoff has worked at the bank since 2000. He said he will not stand for re-election to the board at the next annual meeting and will retire from Citi later this year.

One of Parsons' duties in his new role will be to oversee the split of the bank into two new entities, subject to regulatory approval, a move the bank confirmed in January. Citicorp will focus on core businesses, including global transaction services, corporate and investment banking, private banking, branded credit cards and regional consumer and commercial banking. Citi Holdings will consist of brokerage and retail asset management, local consumer finance and a special asset pool.

Parsons has previously held senior roles at other multinational firms, including chairman and chief executive of US bank Dime Bancorp (now part of JP Morgan) and chief executive and chairman at New York-based media conglomerate Time Warner, where he led the company subsequent to its merger with US internet services provider America Online in 2000.

Citi's chief executive, Vikram Pandit, said: "With his proven record of turning around Dime Bancorp and Time Warner, as well as his work with a wide range of government regulators, Parsons is uniquely qualified to lead the Citi board and help guide the company's strategic corporate realignment into two distinct operating units. Dick will surely play an integral role in helping us place Citi back on the right track and returning the company to a position of sustainable financial success."

See also: Citi hit by $8.9 billion Q4 loss, splits company
$20 billion bail-out for Citi
Citi names Vikram Pandit as CEO