Darren Buckley might get the hatchet at Citigroup Japan

The head of Citibank Japan Ltd., Darren Buckley, may step down from the post as soon as this month as regulators prepare to punish the bank for the third time since 2004, said two people with knowledge of the situation.

Citigroup Inc. is searching for a Japanese national to become the chief executive officer at its local banking unit for the first time to ensure the person is familiar with local rules and the nation’s retail market, the people said on condition of anonymity because no decision has been made.Buckley, 45, is likely to step aside after the Financial Services Agency penalizes the bank for failing to fully explain product risk to retail customers, the people said. He will stay at Citigroup after stepping down, according to one of the people. An interim replacement would then guide the firm while Citigroup talks with FSA officials to form a shortlist of candidates for the permanent role as soon as January, the people said.

Read the rest of the story: Citigroup Said to Consider Replacing Japan Banking CEO on Probe.