[By Larry Goldfarb]

The Michael Corbat era dawned a new feeling of optimism and hopefulness.

• The stock price pushed shares up 3.2 percent yesterday to a 15-month high amid hopes the new CEO will downsize the bank giant out of unprofitable markets.

• Corbat, in a memo to managing directors, said he is aiming to “take the next several weeks to immerse” himself in the 200-year-old franchise as he prepares to lay the groundwork for what could result in a three-year plan that significantly shrinks the bank.

• Bill Mills, CEO of North America, overseeing Citi’s institutional and consumer business, will step into Corbat’s old job — CEO of Europe, Middle East and Africa — on an interim basis, according to the memo, a copy of which was obtained by NY The Post.

• Citi, which operates in more than 100 countries, will likely reduce and retrench in regions that aren’t generating the most bang for Citi’s buck, sources said.

• Optimism for Citi’s shares were at an apex with longtime critics like analyst Mike Mayo raising his outlook for the bank for the first time in five years. Mayo upgraded the firm to outperform — with a $43 price target. “The CEO change can only help mend the credibility gap, at least with regulators, Mayo wrote in a note to clients yesterday.

Although Corbat’s exact game plan isn’t clear, execs within the firm are worried what changes could mean for their jobs.  The CEO’s abrupt departure likely will lead to other executives heading for the exit, too, including his allies Vice Chairman Edward “Ned” Kelly and Chief Administrative Officer Don Callahan, who were Morgan Stanley alums with Pandit.  Other Pandit allies, like CFO John Gerspach and Brian Leach, Citi’s risk officer, have expressed their commitment to stay.

For more information, please read [NY Post. 10/18/2012]