Parsons out, O'Neill in at Citigroup Inc

NEW YORK - Citigroup Inc Chairman Richard Parsons, who helped the bank become a behemoth that almost collapsed in the financial crisis and then led its recovery, will be replaced by fellow director Michael O'Neill.

O'Neill will take over after the firm's shareholder meeting in April, New York-based Citigroup said in a statement. Parsons, 63, spent 16 years on the board, becoming chairman in 2009 after the bank's $45 billion bailout by United States' taxpayers.

Parsons' successor inherits a board grappling with a slump in revenue, higher costs and new regulations as Chief Executive Officer Vikram Pandit pushes the firm into emerging markets. Citigroup has repaid the US Treasury Department's rescue, which generated a profit of about $12 billion for taxpayers. The firm posted total net income of $21.9 billion for 2010 and 2011, compared with $29.3 billion of losses for 2008 and 2009.