New Delhi: There is an increasing speculation that Indian born Citigroup CEO Vikram Pandit could be on his way out. Pandit’s exit is linked to the bank’s mounting losses and plunging shares.
Last December when he was appointed as the Citi Corp Chief, Pandit sounded supremely confident of tiding the banks troubles but within a year the Nagpur-born CEO’s job is on the block.
Citigroup's Board is actively thinking of replacing Pandit. He is under immense pressure from critics who doubt his ability to turn around the company and survive the financial crisis. And his repeated assurances have not instilled confidence.
“We are extremely strong as a company and I got to tell you the number of our competitors is extremely strong as well. We live in a strong financial system. That has not changed,” says Pandit.
Citigroup shares have fallen more than 80 per cent since January and there are fears that the company will not have to access to much-needed funds.
The other options being considered by the Citi board include -
- Side selling part of the company, possibly its Mexico operations.
- A helpline from the US Government to stabilise the financial giant.
The bank has already laid off over 75,000 employees to streamline expenditure and more job cuts could be on the way. Some analysts say an infusion of at least $50-100 billion may be needed to bail out the bank.
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