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Citi Denies Rumors CEO Is on Chopping Block

Feds have criticized Pandit's strategy; company likely to see $6B quarterly loss

By Kevin Spak,  Newser Staff

Posted Jan 12, 2009 8:48 AM CST
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(Newser) – Even as it prepares a fourth-quarter report that’s expected to miss its target by billions, Citigroup says CEO Vikram Pandit’s job is safe, the Wall Street Journal reports. Pandit’s barely had the job a year, but rumors have flown he’d be a casualty of the company’s next shakeup. Federal regulators are pushing Citi to replace its chairman, the New York Times adds.

“We have confidence in the current management and leadership of Vikram,” said Richard Parsons, the Citigroup director considered the frontrunner to replace the outgoing chairman. Citi will post an operating loss of at least $10 billion Jan. 22, with a net loss close to $6 billion. If those numbers don’t change, they’ll be drastically worse than the $4.1 billion analysts are predicting.

Citigroup lost as much as $20 billion in 2008.
Citigroup lost as much as $20 billion in 2008.   (AP Photo)
Citigroup is likely to report a $6 billion loss for the fourth quarter of 2008, which would include a $4 billion gain from the sale of a German property.
Citigroup is likely to report a $6 billion loss for the fourth quarter of 2008, which would include a $4 billion gain from the sale of a German property.   (AP Photo)
Federal regulators--who have poured $45 billion in bailout funds into Citigroup--don't think CEO Vikram Pandit has a broad enough strategy for righting the ship.
Federal regulators--who have poured $45 billion in bailout funds into Citigroup--don't think CEO Vikram Pandit has a broad enough strategy for righting the ship.   (Citigroup)
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Citigroup • Richard Parsons • Vikram Pandit • financial crisis

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