Citigroup CEO Vikram Pandit resigns
- Spot-fixing: Chandila was in touch with four sets of bookies, says Delhi Police
- Chinese Premier Li Keqiang arrives, to hold talks with PM on boundary, water issues
- IPL 2013: Delhi Daredevils crash to defeat, finish last
- Jaganmohan's wife attacks CBI, accuses it of working at Congress behest
- Blast accused death: UP govt seeks CBI probe, FIR against 42 persons
A regular Citigroup Inc board meeting to talk about quarterly results took an unexpected turn on Monday night, when simmering tensions between Chairman Michael O'Neill and then Chief Executive Vikram Pandit came to a boil.
O'Neill criticized Pandit for being too detached from the bank's day-to-day operations, and told him to get more involved, according to sources briefed on the situation.
Instead, Pandit, who had been thinking of leaving for some time, decided to resign. O'Neill did not stop him, the sources said. John Havens, the bank's chief operating officer and a close confidant of Pandit's, also followed in his boss's footsteps out of the third-largest U.S. bank.
In the ensuing scramble, the board pulled out its succession plan and installed Michael Corbat, head of Europe, Middle East, and Africa, as CEO, announcing the changes to stunned employees, Wall Street and investors early on Tuesday morning.
Pandit believes he is leaving the bank in good shape, but analysts said that Corbat has a good deal of hard work to do. Citigroup faces a shifting regulatory environment, a weak global economy, and questions about its expenses, and many analysts and even employees at the bank wonder if the bank is too big to manage.
Pandit was known to have adamantly opposed any break-up of the bank. His exit could revive that talk, particularly in light of comments this summer by Sandy Weill - the man who pioneered the financial supermarket model - suggesting big banks should be broken up.
But on a conference call, Corbat emphasized that he does not wish to change the strategic direction of Citigroup.
There is no question that Vikram laid the foundation to support Citi's long-term growth, Corbat said.
Corbat, 52, is known for being skilled at operating businesses, which the board believed Pandit was not, sources said.
- Former Ranji player among 3 more held
- Rajasthan Royals to file FIR against tainted trio
- If found guilty, BCCI to ask ICC to erase Sreesanth records
- Top cops among 42 named in death of blast accused
- Manmohan-Li talks: PM takes tough line on incursion issue
- Security forces blame Maoists, villagers say CoBRA man was killed in 'friendly fire'