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FBN's Charlie Gasparino says the SEC is likely investigating if Citi misled investors about Pandit’s departure.
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Well this is a Fox Business exclusive reports that Wall -- talking a lot about the reporting of about Charlie Gasparino on destroy the SEC now looking in to the circumstances behind Vikram Pandit and his.
I guess we're calling an abrupt departure from.
From city here Charlie Gasparino has the latest what.
What what would be questionable Charlie about what happens look at exactly what they're doing kind of read recap what we we reported first exclusively last night.
And -- -- does that work confirms abuses -- -- launch what's known as an informal inquiry into -- departure.
-- -- the interest of thing and what could they be looking at and they're they're asking for emails it's it's it's an informal inquiry.
-- -- they haven't said sent out subpoenas yet if there's really no difference other than descending at a subpoenas if he had sent out subpoenas need the full commission to vote on it.
That becomes quote unquote -- -- it's literally the same thing.
What what are they looking at -- they're looking at the disclosure how Citigroup.
Disclosed.
And that's how stirred departure -- -- wanna say remember that Monday the fifteenth they did a conference call.
-- third quarter earnings no mention right as we were first to report that after the bell I think was exactly for a two.
Mike O'Neal the chairman of Citigroup told Vikram Pandit the borders lost confidence you you have to go we'd like you to go.
You should go get out of the get out of the -- now the next morning the sixteenth.
They announce that he quote unquote resigned.
And even more than that Michael -- what we gave a gave a conference call that said it was Vikram Pandit its decision to resign.
Put all that together and when you talk to people like Harvey Pitt which which we who we talk to dead former SEC chairman long time.
Why college -- he'll -- -- that there is room for.
A securities law violation in the sense that.
That Citigroup may have misled the markets.
About about three and it's -- bad can this dispute departure.
How did -- this -- should -- -- -- to mislead.
Should be disclosed eternity earnings -- big question they knew about the board clearly knew he was going -- afterwards and then because they said it was.
And they kept saying -- was a resignation.
Well guess what that's not essentially what happened we nose and ouster now you though he is a thank.
Diesel is there's wiggle room here there's gray area but clearly with the SEC is worried about what's it's been worried about historically.
Is the notion that securities firms mislead the market temperature in -- financial crisis -- all the stuff going around.
Dick fold in the house of Lehman Brothers and the people that Bear Stearns Alan Schwartz saying I was in the -- -- to see here and then also like three days later the place blows up.
That's a big property SEC's of that so there are looking at now this is -- at that level of firms blown up but it is.
Material remember the stock went up on -- its departure.
You know people thought that was a good thing get a better CEO -- there.
So -- is material to the stock the question is should they have -- and and did they when they did disclose it.
Was it accurate I will say this and -- the kind of interest -- wrinkle in this whole thing.
I know analysts who went out and hired -- sort of firms.
-- once firm called equity analysis and strategy it's one of these sort of firms that are made up of former FBI -- the side agents where they have voice technology.
This of weird they went back and they've listened to -- -- -- voice.
-- the third quarter earnings right before he got whacked.
And the -- they concluded -- -- the analysts I told they concluded that.
He was pretty confident.
Witnesses in the call the daybreak does Friday's earnings just came out -- the next day's -- right so they went back to the call to see happen is there any sort of hesitation Brad was ready tweak.
In his comments that nature made you think that Pandit knew he was going.
What they've concluded through this -- Equity analysis is tragic what what -- by the try to get a models is like -- did -- know what's coming apparently.
He was so confident that they concluded.
This was a surprise and now that's interest and if what -- -- was completely surprised.
At the end of the day we apply now we did report there was a lot of tension between the right but -- -- -- that there could be -- that frank and then and ended dvd that -- coming that day you know maybe thought he had time enough to convince them.
Well that's an interest -- what was the trigger for the board so.
A lot of this stuff I think will come out the Washington EST staff investigation and we should put out informal inquiry.
Citigroup they're not not -- -- on this when they do comment they'll say local informal inquiry but it's not that big of a deal it's a pretty big deal in May just.
-- into work -- but I don't you just put out there it is that's that's the -- don't don't attribute it to my Italian American Heritage.
I don't I don't I say I will tell you that I think that is a common that is that is vernacular that's the vernacular of Wall Street course you -- -- did happen and binoculars.
-- -- -- -- Not some crazy -- nice stuff not like telling upgrade my is likely temperature for did you get that is that it.
