Citigroup’s CEO Soon to be Canned by Geithner?

April 21, 2009

(ChattahBox)—As Citigroup’s Indian born CEO wonderkid, Vikram Pandit prepares to meet with investors today with the tough task of convincing them of Citigroup’s financial soundness, rumors are swirling that U.S. Treasury head, TIm Geithner is already searching for Pandit’s replacement. Since Pandit took over as Citigroup CEO in 2007, the bank lost nearly 90 percent of its value, its stock just recently closing at $2.94 a share.

Officials with the Federal Deposit Insurance Corporation have reportedly been engaged in private discussions to provide Treasury with recommendations on candidates to replace Pandit, if he comes to the Treasury with his hand out once again, seeking more bailout funds. The Treasury already bailed out Citigroup three times in the past six months, and is ready to grab a 36 percent stake in Citigroup.

The results of the ongoing government stress tests of the nation’s banks receiving bailout funds, should determine what further steps Treasury will need to take to shore up Citigroup. Citigroup released a statement saying the bank is strong and that Pandit will restore profitability.

Fifty-year old Vikram Pandit arrived at Citigroup last year when it purchased his hedgefund, Old Lane Partners for $800 million. He quickly rose through the ranks to the top spot at Citigroup. As a former hedge fund manager with Morgan Stanley, it seems the freewheeling risk taking ways of olde are no longer working for Pandit. The current financial collapse of our financial system due to high-risk Ponzi scheme like transactions, created a new financial playing field, and former risk-takers like Pandit, who can’t face the current reality are going to be left in the dust.

Some possible names floated to replace Pandit are CFO, Ned Kelly and his predecessor, Gary Crittenden.

Ned Kelly, who shares his name with a famous Australian outlaw, arrived at Citigroup just last month. He was a former attorney with Davis Polk & Wardwell, worked at JP Morgan and most recently, was with the mysterious Carlyle Group, a Washington, DC based private-equity firm with major ties to the defense industry.

The Carlye group has come under scrutiny in recent years for its associations with the likes of Fidel Ramos, former Philippines President; Park Tae Joon, former South Korean Prime Minister; Saudi Prince Al-Walid and members of the Bin Laden family.

The shadowy investment firm has been described as a military-industrial complex, because of its investments in defense industries and its past and present government insider-members, such as former Secretaries of State, James Baker III and Colin Powell, former Defense Secretary, Caspar Weinberger, former White House Budget Director, Richard Darman and Former President, George Herbert Walker Bush.

The Treasury is not publicly commenting on the survival of Pandit as CEO or his possible replacements.

Source


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One Response to “Citigroup’s CEO Soon to be Canned by Geithner?”

  1. Topics about Citigroup | Citigroup’s CEO Soon to be Canned by Geithner? | ChattahBox News Blog on April 21st, 2009 11:13 pm

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