Oct 16 - Shock shift in leadership at Citigroup as CEO Pandit exits just one day after surprisingly strong quarterly results. Bobbi Rebell reports.
Citigroup Chief Executive Vikram Pandit resigned abruptly on Tuesday, just one day after the bank he led reported surprisingly strong quarterly earnings. The change shocked Wall Street. Investors questioned why Pandit would leave now after keeping the bank afloat during the financial crisis and getting it back on a firmer footing. But timing aside, Reuters Breakingviews editor Rob Cox, says Pandit had three strikes against him. No. 1 - shareholder uproar over his $15 million compensation package, which was ultimately voted down, and... SOUNDBITE: ROB COX, REUTERS BREAKINGVIEWS, U.S. EDITOR (ENGLISH) SAYING: "The second one was essentially the inability to get the Federal Reserve to agree to let Citigroup to pay out dividends, the sort of CCAR (Comprehensive Capital Analysis and Review), which happened just around the same time earlier this year when the pay scandal hit. And so those were two really big strikes. Since then, you've had this big, another big strike, which was the sale of the remainder of a chunk of Smith Barney, the retail brokerage, to Morgan Stanley." He was criticized for selling the bank's stake in the brokerage operated by Morgan Stanley at a low $4.7 billion price tag. Vikram Pandit's successor is Michael Corbat, previously Citi's chief executive for Europe, Middle East and Africa. Bobbi Rebell, Reuters