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So everyone we got some breaking news this hour Vikram Pandit is stepping down as CEO of -- now Fox Business director of news -- -- he's in our news from now.
With all the details on that right.
That's right Vikram Pandit out as Citigroup CEO and -- might Corbett.
Who's been running their European business you may also remember he was the guy.
Who's in charge of all the assets that Citigroup is getting rid of it -- -- the the financial crisis.
In this taking the market by surprise people had they had talked about succession planning this year at Citigroup.
-- obviously had been under fire for quite some time most recently Sheila Bair and her book talked about trying to push him not being unsuccessful.
But this was not planned this was not something that that was telegraphed to the market at all -- took a lot of investors by surprise today.
One thing and I'd like to bring in now -- on Charlie Gasparino has been doing now more reporting on this -- one thing Charlie.
That we also -- -- sort of got slapped earlier this year -- he was one of the first big bank CEOs have as compensation package.
Rejected by shareholders and I think some people saw that is a sign that maybe he himself.
Wanted to go somewhere else still.
Well I mean.
I I lost I only people still are sort of -- plus spoiled as you know Citigroup is kind of -- we have called out over there to get -- get the real story.
I mean people would just do little profitable in -- we wanted to you know kind of like a -- done -- right.
Could speed -- Morgan Stanley Smith Barney merger Herbert Smith Citigroup sold -- Smith Barney brokerage firm.
Back to 2008 to Morgan Stanley was deal that was done in chunks but part of that deal is Citigroup -- kept.
As a piece of it's still on its books.
And it sold a piece of that to Morgan Stanley recently but it sold it at a lower price.
David I had on its books is sort of say they've -- they -- missed that the pricing of that.
That they were off by like four billion dollars and subscribes to CEO gets blamed for that but people like -- to say that's not enough to push out.
A CD CE over major systemically important -- we should point out that mr.
Corbett was part of that whole merger which which -- party.
It would be kind of odd to push him out for that and put in his place.
The guy that do you know that that helped -- gulf banks so it does that -- that theory doesn't make sense to a lot of people -- -- series which you brought up earlier which is the -- Now this is -- You know candidate guy that likes to bailout -- everybody knows -- about it.
It is possible -- remember what -- -- the shareholders rejected his pay package right.
The board doesn't have to follow that that's a non binding vote.
However we don't know if they're gonna follow that or not it is very possible that they -- -- today this morning.
Because they would have done yesterday right now but yes they didn't earnings -- and said we're gonna cut your -- -- He just says okay I've had enough I've done everything investment doesn't do it stabilizes place that I want out that it cannot -- not only that showed that.
He was he was one of those financial services CEOs.
But since the crisis was working for the nominal dollar in salary yeah Demi that why they think that they realized it would you get the pay off.
-- one day he would try to make some money we should also point out though.
That's Citigroup what is hedge funds -- like Brad you know I I can't remember the exact amount of money it was hundreds of millions of dollars I think that ultimately fail OK so bad that it had.
-- -- this sort of they get this sort of the harsh light I didn't even making money a lot of money -- a -- but it's been years since he I -- since he's been paid.
So maybe that's that came in effect maybe they -- as a shareholder rejected it.
We are now IE.
You know what Citigroup where where -- run by the federal government in many respects all these banks I think.
I don't think people realize is all these banks arguably answer to -- it now in ways that we don't see now I think the regulators at the SEC stated.
The that is actually the primary regulator here Treasury Department has a role obviously.
I think there are those guys are.
You know prepare.
They don't want their fingerprints -- stuff so you know if we may not get -- -- -- the real story that the regulators pushed about.
For awhile we -- also throw something else sit here okay I'm just -- -- this -- right now.
Corbett is is it -- he's a capable guy.
-- Tim Geithner is going to be out of a job -- a couple months.
Don't be surprised that Tim Geithner goes to work for Citi corporate -- that he's a possibility here now you know we have a regular if mommy gets elected.
-- it's going to be a little different you have really you know are you gonna have these former you know Treasury Secretary for per person Obama the guided -- lately whatever.
You know you think of is -- economic recovery plan is regulation of the banks -- -- it was a big supporter of Dodd-Frank which.
With which they're probably -- criticized running the biggest systemically important banks.
You know I -- know I I don't know that that would matter but Tim Geithner is going to be adequate job in a couple months I would be surprised to see him go there.
So that's a great point Charlie Charlie thanks you'll be reporting more on this throughout the day.
-- now is Dennis Kelly hit the Kelleher CEO of better markets Dennis.
Obviously with the timing of this says sort of a surprise is that unsettling to you from an investment perspective.
Well I think it's unsettling anybody given the size of this bank and the fact that -- -- -- of -- -- -- given that it was the largest recipient of federal money and it -- together -- -- the that's -- just on the 500 billion dollars in -- guarantees.
And indeed the United States should government US taxpayer put in more money in November of.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- The the let's go to Nicole pedal -- down at the New York Stock Exchange the -- what are the traded down they're talking about.
What -- a couple of things that -- gonna come to light here -- some of the traders say it was a long time coming they were anticipating it.
But it's an odd timing so they want to know what's wrong.
-- they -- right away while she begins to question and that's why you start to see Citigroup stop selling off it's been down just over a dollar.
Couple the traders -- top do want to know.
Why it both.
Vikram Pandit and the chief -- operating officer mr.
havens both stepping down the same time at this time and clearly -- did a great job through the financial crisis rescuing the banks.
Moving it -- at a greater earning season and the stock is up over 30% this year.
But why exactly that's coming up bop its lows we -- in the premarket.
But why now and why in this way.
So that's sort of what is what we're seeing and I think that they're talking about of course are Goldman Sachs quarterly reports and we're watching the financials and those are doing well.
Coca-Cola coming out with their numbers -- slightly to the downside for that stock.
Halliburton Newmont mining and -- -- all getting analysts call Halliburton initiated with an outperform -- Credit Suisse.
Fossil watches on the moves that -- looking that after being upgraded Citigroup and gold is on the upside and and gold stocks that's.
Latest -- -- you great thank you -- call I think we have Dennis however that -- you're making a point -- about Dennis about how Citi is sort of this continues to be awarded the -- here.
And how that makes this news a little more unsettling than it otherwise would.
-- that -- the fact that it is one of the major too big to fail banks in the country and it runs into trouble again it's gonna end up getting bailed out like -- that last time also don't have brings up another point Dennis eight -- is Citigroup as we see it now.
Under new leadership could we see a much even smaller Citigroup are there are there more assets to get rid of and is this event that you expect to shrink as we go forward not grow.
Well I think from the point of view of systemic stability and protecting taxpayers.
People should hope that -- shrinks and also if you look at its book value relative to what it's trading at.
I think everybody would be well served in the market as saying that not just about Citi but about the other too big to fail banks.
On the other hand you know we have a statement as recently as orchestra Pandit himself that he attended the state for several years.
So we have a pretty big abrupt about face here in the short period of time.
Catching the market and everybody else off guard which isn't very Good Friday the markets -- for the stability of the financial system so I think people need to look at this.
And wonder what's happening I'm not sure Charlie's ideas about succession -- what's going on here.
But whatever is going on here people should have a better understanding of their condition is at the top of these big too big to fail banks.
Some ought to be happening -- a more responsible manner.
Britain real quick bottom line though a year to five years from now Citigroup better wither without candidate.
Some I think -- -- transition away from the same crowd that delivered it's and large.
Part the problems that came to the -- in the financial crisis -- -- -- that leadership is essential so.
I'm I think a big you could change in leadership is good that was done smoother with more planning and more public market planning that we all would have been better off.
Dennis Keller CEO of better market thanks for joining us and thanks Charlie Gasparino will be continue to reporting on this day Diane.
Lots going on today with with Pandit and other things so keeping here.
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