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Better Markets CEO Dennis Kelleher and FBN's Adam Shapiro on Vikram Pandit's sudden exit from Citigroup.
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-- -- -- the new CEO Michael -- chairman Michael O'Neill ending just moments ago and the shockwaves from Vikram Pandit Alistair are just beginning.
Adam Shapiro and -- markets CEO Dennis.
Join us right now to reacted -- wanna start with you could you just pop off the call and we are tracking about -- in the commercial break there what was the most surprising thing that you heard.
That Michael look that Michael O'Neill was trying to make this seem as if it was no big DL this is a simple transition one -- -- another the problem is they argue the captain of the concordia.
Are you that happens in I got -- three here if they try to pass this off as if look we've been looking for a possible new CEO for two year you know -- at noble Charlie Gasparino has been reporting all down Fox Business from that the sources he has -- -- -- people that board.
That -- was ousted.
Yeah Dennis what do you think what happened.
Well that Adam and Charlie are both dead right and obviously because they've they've -- period of the ground but you know.
You don't jolt the market with an unexpected announcement on no notice of an effective immediate resignation of both the S this CEO -- the COO.
If it's something that's planned.
And Citigroup would be better off if they'd stop -- -- -- and just start some straight talk which they haven't done for a long time.
What do you think the -- was -- -- -- a lot of people have said today that he made fifteen million dollars last year that you know that's outrageous when the stock price you know is down 90% during his ten year a lot of -- the financial crisis but keeping it was about conversation -- -- at a when you think.
What we had a shareholder revolt in the 55%.
Voted against his pay package.
He was paid a 165.
Million dollars that's what he made from the sale of -- hedge fund raided and closed on lane and the performance issue and actually talked about performance and let let's be honest here I mean the perform look at.
Fat and great then went one of the worst charts and everything and when they talk about Dick -- actually was complementary if that -- saying look he -- this bank from bankruptcy.
-- the US taxpayer he's ever been -- from bankruptcy.
Didn't ask -- why anyone want this job I mean it is really hard to run a bank right now when you've given it everything is going out with Dodd-Frank.
-- the government trying to limit your fees.
Why would you want to take this over.
On the one hand it's a good question but it's not because a regulation of the government lets face it that how they met.
That the management.
Citigroup ran -- into the ditch and it caused as Adam just pointed out.
Not only the bailout but the biggest ballot of any individual institution 475.
Billion dollars in total.
So they've been trying to dig out of a very big hole that they created for themselves and of their reckless consumer biracial and a lot of those jobs out.
While the real issue is whether or not somebody's gonna take the job in trying continue along this failed too big to fail model -- -- remember they're trading about 60% of book right now.
The market is telling them that this bank is too big to disparate it needs to be broken up by -- -- so that they can actually maximize shareholder value.
They need to right size this bank -- if the board got behind an intelligent business plan.
That a business person wanted to run this is a great opportunity for a real leader to come in and take this bank to the next stage you -- instead of I got.
The problem is that we have the lead that's a great point but the problem is we heard the chairman and saying no change in plan.
That's -- -- -- resonate well with investors the event.
Well I think they can't look at that market has made its judgment 60% of book come on.
Right they're saying that they're not gonna change course the big big big change the captain but we're sticking to say plant do you think I -- do better -- Well I think there right now try to put their finger plug up the leak that they've got because they've just shown that they can't even manage -- transition in the executive office.
Never -- -- the board manage the company -- come up with a strategic direction that makes cents.
The 55% of voted against the pay package -- -- and wasn't just a vote of no confidence on him there was a vote of no confidence on the strategy which the board has endorsed this sport better wake up.
-- -- gonna have a bunch of more shareholder surprises no no change in strategy the strategy steeper.
Underlying.
I'm not gonna make a judgment call that I'm quote to innovate if he believes that at the quote he gave me an amstel kinda green -- -- -- but -- at the internationalists.
-- taking control of Citi.
And what he he's if I understood him correctly.
He thinks and they talked about this that their plan about you know foreign markets is much more important to them in the United States.
He seems to think that's the direction they're gonna go mountain boy that's that would be bad news because they've had a terrible history of failures in the international markets of the American taxpayers got to look out.
Okay how are you guys thank you so much -- --
