More good news today:
Citigroup Inc. Chief Executive Vikram Pandit abruptly stepped down following a clash with the company’s board over the bank’s strategy and performance, according to people with knowledge of the bank. …
The company’s shares fell 89% over Mr. Pandit’s tenure, in part because Citigroup issued billions of shares to repay government aid taken on during the financial crisis. Mr. Pandit received $165 million for selling his hedge fund to Citigroup in 2007 and received millions more in subsequent years, including $14.9 million in 2011.
Citigroup shares rose 30 cents to $36.96 in midday trading Tuesday.
This is very good news for Citi and the stock’s rise shows it. Mr. Pandit, whom this blog not so affectionately refers to as “Mr. Bandit” because he skinned Citi out of $165 million on the sale of his worthless Old Lane investment management company to Citi just before the Crash. Ever since then he has relied on government bailouts to keep Citi afloat, which earned him our coveted “Crony Capitalist of the Month” award at one point. He, like his fellow Cronies, couldn’t allow Citigroup to fail because of their very bad business decisions and bent knee to Bush to get a bailout with taxpayer money. They haven’t changed so much since then, more or less engaging in the same businesses as they did before the Crash. That is, other than to fight the government over the much needed higher capital ratios of Dodd-Frank.
Good riddance Mr. Bandit.