Citigroup's audit committee head to step down

Citigroup's audit committee chairman, Michael Armstrong, has stepped down following accusations from shareholders that he failed to adequately oversee the risk-management process in recent months.

Critics claim Armstrong, 69, is partly to blame for the mistakes at the bank during the credit crunch as it endured more than $20bn (£10bn) in losses. Other directors admitted they were unaware of the company's exposure until the write-downs started accumulating, the Wall Street Journal reported.

Senior management has become a target for investor groups. Last month the CtW Investment Group called for the resignations of Morgan Stanley chairman and chief executive John Mack, and directors Howard Davies (pictured) and Robert Kidder, even though all three executives have been nominated for re-election.

Armstrong will remain a member of the committee.

In the meantime audit committee members of US Washington Mutual, also face calls for their resignation.

Further reading:

Shareholders call for directors' heads over sub-prime market decisions

Investors question audit committee knowledge

Ex-FSA chief set to face crunch questions