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Did Citi Violate Securities Laws With Pandit Exit?

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  • Description

    FBN’s Charlie Gasparino on Citigroup’s handling of Vikram Pandit’s exit as CEO.

  • Duration 4:23
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This transcript is automatically generated

Do -- Citigroup violate securities laws.

With the way they kind of clumsily ousted Vikram Pandit as its CEO last week following news first reported by Fox Business.

That the SEC is investigating -- -- Wall Street is at odds over whether city actually broke a law.

Charlie Gasparino working this story you look at what else is -- We should point out that this is what's known as a preliminary inquiry right now.

The differences between that and a full fledged investigation -- this in a preliminary liquidity is is he goes to you and says.

Give us the documents we want in this case it's emails.

Surrounding Vikram and its departure.

In it in a full blown investigation they demand they they said he was subpoenaed.

-- -- -- The reality it's almost the same thing they're looking at his.

OK so now what is going out we know they're investigating how they disclose and remember the sequence of events that I remember the day avid -- question me about the sequence of events.

-- isn't it weird.

Did he know that he was getting fired.

Obvious apparently he did not know they knew the board do.

Right before he actually happened -- at the way they did ever conference call are.

4 PM no one knew this they told them adios amigo we'd like you to go next day it's caught up with its publicly announce on the conference call.

It's actually publicly announce -- a press release and then you know they have a conference call about saying that just -- The SEC is -- is looking at this whether they were they properly disclose -- the way the process.

Work I will tell you and whether.

That -- statement that it was his choice is is is violates any securities laws because as you know he really wasn't his choice.

I will say this -- this Harvey Pitt we asked who's a former chairman of the SEC major white collar turning this Peter -- We to university law reverse a one of the best in the business blazers out pretty clearly.

To differing opinions -- Is saying in this could be dead if they can prove that they knew that he was announced that he was ousted they they actually -- -- and as we reported first.

And -- around the started saying hey you know you know it was his choice and by the way.

Maybe they should have disclosed to jury in the conference call to all investors they have an obligation affirmative obligation it slows everything they know the board.

He's saying that this could be a profit Citigroup heading is look at out -- -- for what you say listen the only kind they have to disclose that -- guys leave it.

Resigned his when he resigned and technically he did not resign during a conference call he was still there they haven't asked -- yet so they're disclosure requirement was the minute.

He resigns.

Thing to you to basically to basically saying he resign what -- -- When -- -- -- -- the -- No that's assault victims decision which they held by that story now testify at the next day despite the fact that we were the first report that he was -- -- the Wall Street Journal came after us Bloomberg get married and they they busted from lying to investors and their virus that's -- -- Hussein essentially.

-- it is saying that you know that is if they can prove that he really he really wasn't him.

That's a problem -- has taken a different -- he's saying well there's a lot of gray area like okay we -- entered into you know for example.

-- doesn't know clearly did not know during a conference call people like checked his voice right they -- that they had.

Analysts look at his voice in this patterns I know an analyst at did get hired an outside consultant for a whole ready to -- nothing to see what he how he was presenting.

I was presenting the RTC was very confident doesn't that sort didn't look like finance it and look like you OK so they -- the blown out later OK they ask him to leave.

Maybe they said why -- we think he should leave and he said okay.

And maybe they said leave let's do an orderly Saddam -- go now so that it is kind of an agree sort of -- and a grey area sort of way.

Eighty him leaving it's his choice -- he picked when he wanted to leave.

You know I we don't know we don't know all the facts.

-- it's -- to put somebody jealous I doubt it other you know look at this I'm telling you they are we know that.

And I would just say this is why I think it's a good story you know we had.

You know what blown up our you know what.

For a long time during a financial crisis with these companies.

Putting out these sort of uneven and really.

Sort of in many ways false statements felt that -- may have illegally OK but they misled the market things are fine -- -- allies -- -- our guy Alan Schwartz from my brother from from a bear shares are two days later placed blows up as things were fine.

I I don't like some companies put out stuff that's that's 180 wrong even if it's legal --

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