Citi Said to Have Ousted Pandit After Setbacks
Bloomberg reported, according to a person with knowledge of the discussions, that Citigroup directors ousted chief executive officer Vikram Pandit after concluding his mismanagement of operations caused setbacks with regulators and cost credibility with investors.
Bloomberg said that “episodes” included the rejection by regulators in March of a plan to boost shareholder payouts, Citi’s write-down on the Smith Barney brokerage unit and a two-level cut of its credit rating by Moody’s also contributed.
In a related story, the Wall Street Journal said that Pandit’s career at Citigroup “was plagued by a series of missteps, including high-profile black eyes this year that included a shareholder revolt over executive pay, a rejection by the Fed of a plan to buy back more stock and an “arbitration decision” over the value of the Smith Barney brokerage unit that forced Citigroup to take a $2.9 billion write-down.”
In an interview, the Journal said that Pandit’s decision to resign was entirely his own. “It was my decision”, the Journal quotes Pandit as saying. The Journal also noted that Pandit’s “abrupt departure” came as a shock to Citi employees including senior executives.
To read the Bloomberg story click here.
To read the Wall Street Journal article click here.
To read monitordaily’s report on Citigroup’s Q3 earnings release click here.