More so when it wears the Citi crown! Is Vikram Pandit drowning in a vicious cycle? by Deepak Ranjan Patra
The honeymoon is over now, and 2010 has to be the year whereby you begin showing the world that you are a force to be reckoned with...” (2010; Forbes)
“He got my message very clear that my support has been withdrawn. You can’t go publicly & say our losses are around $3 billion post-tax and then all the sudden add another $11 billion loss.” (2007; Fortune)
T here is a lot these two statements reveal when you take them in the right perspective. Both these statements were made by Prince Alwaleed Bin Talal Al-Saud, Citigroup’s biggest individual shareholder. The difference, besides the years, is that the comments were directed at then Citi-CEO Chuck Prince in 2007; and to Vikram Pandit now. The message is loud and clear – perform or perish. Prince didn’t get it right; and Pandit is tethering close to an encore.
Into his third year as the head of Citigroup, Pandit is now facing stiffening pressure from investors to prove his mettle. More so after his peers at Goldman Sachs and Wells Fargo managed to transform their banks from Wall Street’s problem children to money making machines... and Pandit failed.
Beating industry expectations, both Goldman Sachs and Wells Fargo have posted annual net incomes of $13.39 billion and $12.3 billion respectively. On the other hand, Citigroup has posted a net loss of $1.6 billion. Pandit’s pals may argue that the bank would have returned to profit in the last fiscal had it not faced a $6.2 billion hit on the repayment of bail-out funds. But did Pandit not know, since June 2009, that Citi would have to meet this requirement at year-end?
The honeymoon is over now, and 2010 has to be the year whereby you begin showing the world that you are a force to be reckoned with...” (2010; Forbes)
“He got my message very clear that my support has been withdrawn. You can’t go publicly & say our losses are around $3 billion post-tax and then all the sudden add another $11 billion loss.” (2007; Fortune)
T here is a lot these two statements reveal when you take them in the right perspective. Both these statements were made by Prince Alwaleed Bin Talal Al-Saud, Citigroup’s biggest individual shareholder. The difference, besides the years, is that the comments were directed at then Citi-CEO Chuck Prince in 2007; and to Vikram Pandit now. The message is loud and clear – perform or perish. Prince didn’t get it right; and Pandit is tethering close to an encore.
Into his third year as the head of Citigroup, Pandit is now facing stiffening pressure from investors to prove his mettle. More so after his peers at Goldman Sachs and Wells Fargo managed to transform their banks from Wall Street’s problem children to money making machines... and Pandit failed.
Beating industry expectations, both Goldman Sachs and Wells Fargo have posted annual net incomes of $13.39 billion and $12.3 billion respectively. On the other hand, Citigroup has posted a net loss of $1.6 billion. Pandit’s pals may argue that the bank would have returned to profit in the last fiscal had it not faced a $6.2 billion hit on the repayment of bail-out funds. But did Pandit not know, since June 2009, that Citi would have to meet this requirement at year-end?
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)
