Is Vikram Pandit sinking Citigroup?
It certainly seems so. Even when the bar has been set so low for lumbering financial institutions, Vikram Pandit is managing to make a name for himself through his stupidity and incompetence. According to CNN, “while many major banks have only reported losses for the past two quarters, Citi has lost money for five straight quarters”.
In fact, Citibank’s fate took a turn for the worse the very quarter after Pandit was brought in. And with him at the helm, it has only progressively gotten worse for five successive quarters.
Mr. Pandit isn’t helping things. Yesterday, a memo he sent to Citi’s workforce was made public and ultimately, shredded to pieces by the business press. In his inane memo, Mr. Pandit appears to be playing games when he declares that Citi is profitable, “quarter to date”. Analysts expect losses of well over 10c per share for the first quarter. Mr. Pandit seems to have just picked the right time in the quarter to send his note out. In other words, he is playing children’s games with timing rather than focusing on the ultimate issues that plague his company. Some are of the opinion, of course, that Mr. Pandit himself is one of Citi’s biggest problems, but that may become abundantly clear in the near future.
CNN comments on Pandit’s ‘strategy’, which so far seems to be comprised only of misplaced optimism, with the following quote:
“”This is in line with Pandit’s practice of taking the dog’s tail off an inch at a time,” said Lee A. Sheppard, a tax attorney and contributing editor at the tax journal Tax Notes. “Maybe they think Congress will make the losses and credits refundable.”
Good luck to you Citi. We hope you can survive Mr. Pandit’s shennanigans. You can read the full CNN story here.
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