Citigroup will be overhauling its board as soon as possible in light of the 36% stake the US government has taken in the bank, but board chairman Richard Parsons may find recruiting from financial services firms to be difficult, according to an industry analyst.

Parsons issued the following statement after Citigroup announced its new arrangement with the government: "On January 16, 2009, I announced on behalf of the board of directors that we had determined to 'reconstitute the board... as quickly as possible.' I am pleased to announce today the next step in reconstituting the Board: the Board unanimously decided to have a majority of new independent directors as soon as feasible.