Citigroup's board is expected to pick the new CEO early next week, concluding a search formally begun when Charles Prince resigned Nov. 4, The Wall Street Journal reported Saturday.
Pandit currently oversees Citigroup's investment bank and alternative-investments businesses while Willumstad is a former Citigroup president.
A chaotic credit market has forced Citigroup to write down billions of dollars and a write-down of up to $11 billion more is expected in the fourth quarter, analysts and bank insiders told the Journal.
The board also needs to choose a new chairman of the board. Robert Rubin, the former U.S treasury secretary, has held the seat since Prince resigned.
'SNL': 'Anchorman 2' cast, One Direction sing 'Afternoon Delight' [VIDEO]
Exploding whale video goes viral on Internet