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Lebenthal Asset Management President Jim Lebenthal on Citigroup’s future after Vikram Pandit was ousted as CEO.
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And contending with our coverage of Vikram Pandit to exit James -- involve involve asset management joins us now James you -- shares of the company.
Is it time for another break up of Citi.
I absolutely think so and I'm not gonna -- Vikram Pandit under the bus.
There's definitely a question about the board's culpability and everything's gone on for last four years remember Vikram came in.
-- things were going downhill in the financial sector as a whole.
The problem with city is it's got some remarkably good attributes to -- some great assets like its international banking.
Regime if you well.
But nobody ever thinks about that because it's so encompassed by everything going on with whether the Fed will allow it to raise its dividend and buyback shares.
Or as Charlie was mentioning the decision to sell the rest of of the retail operation Smith Barney and and actually it's not a one person dark corner -- national -- -- -- well most recent quarter but yet but that's that's a long term business that's not one that were worried about in the slightest bit people basically what you want to -- yeah and he did.
What we need to realizes this is not a one man show this bank is far too big to be a one man show.
So what you need to do -- you need to get a visionary in there who can figure out how to carve up the assets just as a for instance.
-- got a very good banking franchise both domestically and internationally you've got a decent investment banking franchise.
But the global securities transactions business is kind of it's it's in no -- land competing with the banks of New York in the state streets of the world.
Get rid of that get a guy in there who's good at restructuring these things to get rid of it at a good price.
That's an ACL -- corporate heavy he is now on -- we -- -- got one analyst commentary from Wells Fargo this morning saying the look this is a true banking.
Person this is somebody that's gonna comment actually again -- think -- on -- bank which nobody seems to want.
And then and then cut the -- and make this a true bank may be hit the is the sky.
Could be I'm -- -- he has gotten some good plaudits so far I'd really like to see an outsider comment why -- I doubt this new guy so much you think a total.
Fresh high -- can't have a thirty year insider that's that's basically -- you took the words out of my mouth I mean think about what Gorman is -- at Morgan Stanley coming and and Jamie Dimon even -- chase now we all think he's been there forever but -- remember he came in from -- Banc one acquisition several years ago.
So in a sense he was an outsider took over for Harrison really got the bank going in the direction it -- ago I think you need a fresh set a vice use your your term.
Do you do you think at the end of the day that -- accident this about the -- but and other more than half loan growth gentlemen welcome growth.
They had that revenues were looking pretty decent is a good quarter overall user and it didn't mention this before the show is apparent tightening this whole thing is just kind of off either means one wait till Thursday.
So what what's -- A couple of things here one this definitely draws into question the board now when I heard the news I thought to myself this is a board full of very Smart accomplished people.
Bomb however -- the same thing could have been said about Hewlett-Packard's board.
And that is just say you know -- a textbook case of dysfunction I don't think Citi group's board is anywhere near as bad as Hewlett-Packard's board has been over the last few years but.
They need to get this CEO transition done extremely smoothly or the or the competency of the board will be drawn and the board took no action for a 182 days after shareholders 55% vote against the Pandit pay package and the border did nothing what should the board of done.
You know I did not vote against the Pandit pay package so why -- you know I'm okay with that.
You but you can definitely take exception to it that struck me is one of those things that was more popular vote than an economic vote.
I mean Vikram Pandit again I'm not gonna throw him under the bus he got brought in at the absolute worst time.
And did pretty good job -- me chuck prince left him one heck of a -- something that was that was a big mess when you think about.
How many mortgage backed securities CD OC EO -- were on the balance sheet that need to be cleaned up.
Vikram Pandit did a very good job of doing that I have no problem with Vikram Pandit but you'd need a visionary in -- now to streamline the business.
I asked them about the about the the way that this was handled unfortunately maybe this things are never done in a clean efficient way that but this was handled rather badly cracked yeah -- you that you -- London -- looking -- the television screens this morning going.
The companion is -- -- -- -- at me looking have a television screens and say -- the sense doesn't it does this CEOs on step up.
-- I was blind side if you just look -- gentler.
But listen I would be -- this is where you folks are gonna really cut your chops by doing the reporting and finding out what happened but I suspect that two things happen I think the board was unhappy.
And Vikram Pandit probably said you know what I've made a lot of money I think I've done a good job.
And importantly the stock is well back from the brink we're doing okay.
I don't need this anymore fellows on out of here in a divorce often the spouses can agree on who really broke up that may be happening here thanks very much -- -- of this change claim they don't you present it and.
