Citigroup was directly pressured by US regulators to replace its former finance chief Ned Kelly, just weeks before his surprise departure, a confidential agreement reveals. The document, partly seen by the Financial Times, appears to contradict the accounts of both sides over what happened. It is expected to bring confirmation that the replacement of Ned Kelly by John Gerspach in July after only four months in the role, was triggered by US regulators. The US government holds a 34% stake in Citi. The late-June agreement between the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation with Citi, reveals that Citi was prepared to consider whether to replace its CFO before October. The statement reads: '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 replacements 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].' The regulators and Citi declined to comment at the time, and made no mention of the agreement in Citi's press release announcing the directorate change.