The Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation told Citigroup to replace its chief financial officer less than a month before his unexpected departure, according to a confidential agreement seen by the Financial Times that appears to clash with what parties said at the time.

The late-June agreement said: “Citigroup will initiate a process that will result in a decision on (a) whether the CFO for Citigroup...can be more effectively utilised in other Citigroup responsibilities. And (b) if so, on replacement by a person...with relevant financial, accounting or other experience acceptable to the agencies, with the results publicly announced by...publication of Citigroup’s third quarter 2009 earnings [in October].”

Unnamed sources told the paper that Ned Kelly tendered his resignation when he heard of the agreement, leading Citi to offer him another post and to promote John Gerspach. The changes were made public on 9 July, the week before Citi’s second quarter results.