When Citigroup chairman
Charles Prince III ceded leadership of the firm to former Treasury
secretary Robert Rubin amidst massive losses at the investment banking
giant related to subprime mortgages, it was a reminder of the power
wielded by Saudi billionaire Prince Alwaleed bin Talal, Citi's largest
shareholder. Now, as Citigroup searches for a permanent replacement for
interim CEO Sir Winfried Bischoff, one person who may have a say in the
matter is hedge fund billionaire Edward Lampert, founder and chairman
of Greenwich, Connecticutbased hedge fund firm ESL Investments.
Lampert, who is best known for amassing a controlling
interest in Sears Holdings Corp. and taking on the company's chairman
post, began building a position in Citigroup in the first quarter of
2006. At that time,...