Richard Parsons taking up Citi post

Succeeds outgoing chairman Win Bischoff

NEW YORK -- Former Time Warner CEO and chairman Richard Parsons will become the new chairman of financial services giant Citi, formerly known as Citigroup.

Parsons, 60, had served as lead independent director on the firm's board since last year and been rumored to take the chairman post in recent days as Citi turns itself around for growth after suffering from the financial crisis and credit crunch.

Parsons, known for his diplomatic and people skills, will succeed chairman Win Bischoff, 66, effective Feb. 23.

"I look forward to continuing to work with the board and management of Citi in my new capacity as we continue to strengthen the company's core franchise and build value for our shareholders," he said.

Citi CEO Vikram Pandit said Parsons "is already an invaluable asset to Citi," lauding him as "an outstanding business leader with a broad and deep understanding of the banking industry." Parsons was previously chairman and CEO of Dime Bancorp.

"With his proven record of turning around Dime Bancorp and Time Warner, as well as his work with a wide range of government regulators, Dick is uniquely qualified to lead the Citi board and help guide the company's strategic corporate realignment into two distinct operating units," Pandit said.

At TW, Parsons' focus was on reconciling people at the company's different units after the much-maligned AOL-TW merger.

In other previous jobs, he was managing partner of New York law firm Patterson, Belknap, Webb & Tyler and held positions in the state and federal government. For example, he served as counsel for Nelson Rockefeller and senior White House aide under President Gerald Ford. For a while, he had been tipped for a post in the Obama administration or a run for the post of mayor of New York.

He recently left the TW chairman post to Jeffrey Bewkes, who also serves as CEO of the entertainment giant.