Is Vikram Pandit closer to getting the boot? According to the WSJ, the FDIC is pushing for yet another Citigroup top management shake-up, “imperiling” CEO Vikram Pandit according to their report. There’s apparently no love lost between Pandit and Sheila Bair, dating back to last fall when Bair endorsed the Wells Fargo higher bid for Wachovia after Citigroup had agreed to take over the firm in a government arranged hookup. That led to late night conference call where Pandit is said to have waged an expletive deleted filled tirade against Bair. We wonder what Pandit might be saying about his nemesis this morning. (We can guess, and it’s probably not pretty.)
Sounds like new Citi board member, Jerry Grundhofer, who’s the former U.S. Bancorp CEO, might be in line for Pandit’s job. But not all regulators are apparently on board with Bair’s position….
The FDIC, under Chairman Sheila Bair, also recently pressed a fellow regulator to lower the government’s confidential ranking of Citi’s health — a change that would let regulators control the firm more tightly….
The FDIC’s willingness to take an increasingly tough position toward one of the nation’s largest and most troubled financial institutions is setting up a bitter clash between regulators — some of whom disagree with the FDIC’s position — and between the FDIC and Citigroup, whose officials have argued that Ms. Bair is overstepping her authority.
“The FDIC is our tertiary regulator,” behind the Office of the Comptroller of the Currency and the Federal Reserve, said Ned Kelly, Citigroup’s chief financial officer…..
FDIC Pushes Purge at Citi – Wall Street Journal