Here is the bottom line. From the day Pandit took control in December 2007 until today, C stock is down 90%.......Even as Pandit has been paid a total of over $260 million during his CEO tenure, even including his famous $1 comp received in 2010. While CEO of Citigroup in 2007, Vikram Pandit earned an annualized compensation of $3,164,320, which included a base salary of $250,000, stocks granted of $2,914,320, and options granted of $0. In 2008, he earned a total compensation of $38,237,437, which included a base salary of $958,333, stocks granted of $28,830,000, and options granted of $8,432,911. In 2009 he received total compensation of $128,751, including base salary of $125,001; In 2010 he received total compensation of $1,00; In 2011 he received total compensation of $14,857,103 including base salary of $1,671,370. Oh, and this number includes the $165 million Pandit received for his low performing hedge fund which was purchased by Citi in 2007, and was closed by Citi a few months later for epic underperformance.
Divergence in thinking.
A new week begins. Here are the major global market-moving events to look forward to for both the next week, and for the remainder of October and November.
Hint: It Was Not To End the War Or Save Lives
Just when we all thought the Macondo disaster could be put behind us and TV ads proclaim the Gulf's recovery, a sheen of oil has reappeared and the coastguard confirms it is directly linked to the Macondo well. According to WDSU, the sheen is a light oil and would be difficult to clean up. "The exact source of the sheen is uncertain at this time but could be residual oil associated with wreckage and/or debris left on the seabed from the Deepwater Horizon incident in 2010," the agency said in a release Wednesday night.
We have been very active in our discussions of the impact of the pending rise in food prices around the world (from central bank largesse to weather-related chaos). As Goldman notes, food inflation has been one of the most significant sources of headline inflation variation in emerging markets (EM) over the past few years. Since June, international prices for agricultural commodities have risen almost 30%, increasing the risk of fresh, food-related increases to EM headline inflation. We, like Goldman, expect EM headline inflation to start to reflect the relevant pressures more broadly in the October prints at the latest. While the effects, for now, are expected to be less extreme than the 2010-2011 episode, the timing as the US enters its fiscal-cliff-prone malaise, could mean a further round of easing will reignite this critical inflationary concern.
Spoiler Alert: They’re mostly still in office (so much for building suspense).
On October 3, 2008, 338 elected officials (263 House reps, 74 Senators and 1 President) took it upon themselves to save America from certain financial doom by passing the Emergency Economic Stabilization Act of 2008, completely ignoring the will of the American people, opting instead to fulfill a Thomas Jefferson prophesy:
“The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.”
~ Thomas Jefferson
- Draghi Says Next Move Not His as Spain Resists Bailout (Bloomberg)
- EU Doubts on Deficit Cutting May Hinder Spain’s Path to Bailout (Bloomberg)
- Merkel to Visit Greece for First Time Since Crisis Outbreak (Bloomberg)
- Fed's Bullard warns inflation won't ease U.S. debt burden (Reuters)
- Walmart Workers Stage a Walkout in California (NYT)
- Natural Gas Glut Pushes Exports (WSJ)
- BOJ Refrains From More Stimulus as Political Pressure Mounts (Bloomberg)
- Big funds seek to rein in pay at Wall Street banks (Reuters)
- Hong Kong Luxury Sales Fall as Chinese Curb Spending (Bloomberg)
- Dave and Busters Pulls IPO due to "Market Conditions" (Reuters) - so market at anything but all time highs now is market conditions?
- Weak U.S. labor market looms ahead of elections (Reuters)
- Glut of Solar Panels Poses a New Threat to China (NYT)
BP's Macondo Well May Leak for Years
While some have blamed last night's 'performance anxiety' on the President's efforts to save our economy and not having time to practice, and others at Romney's 'bullying' of the moderator, it seems Al Gore has come up with the real reason - it's the altitude, stupid!
Manufacturing Just Crashed And VCs Face A “Dismal Fundraising Climate”
Bill Gross: The US Is A Debt Meth Addict - Unless The Fiscal Gap Is Closed Soon "The Damage Will Be Beyond Repair"Submitted by Tyler Durden on 10/02/2012 06:37 -0500
The highlights from Bill Gross' latest monthly piece:
- Armageddon is not around the corner. I don’t believe in the imminent demise of the U.S. economy and its financial markets. But I’m afraid for them.
- Unless we begin to close this gap, then the inevitable result will be that our debt/GDP ratio will continue to rise, the Fed would print money to pay for the deficiency, inflation would follow and the dollar would inevitably decline. Bonds would be burned to a crisp and stocks would certainly be singed; only gold and real assets would thrive within the “Ring of Fire.”
- If the fiscal gap isn’t closed even ever so gradually over the next few years, then rating services, dollar reserve holding nations and bond managers embarrassed into being reborn as vigilantes may together force a resolution that ends in tears. The damage would likely be beyond repair.
- The U.S. and its fellow serial abusers have been inhaling debt’s methamphetamine crystals for some time now, and kicking the habit looks incredibly difficult.
- Trade Slows Around World (WSJ)
- Debt limit lurks in fiscal cliff talks (FT)
- Welcome back to the eurozone crisis (FT, Wolfgang Munchau)
- Euro Leaders Face October of Unrest After September Rally (Bloomberg)
- Dad, you were right (FT)
- 25% unemployment, 25% bad loans, 5% drop in Industrial Production, and IMF finally lowers its 2013 Greek GDP forecast (WSJ)
- Global IPOs Slump to Second-Lowest Level Since Financial Crisis (Bloomberg)
- France's Hollande faces street protest over EU fiscal pact (Reuters)
- EU Working to Resolve Difference on Bank Plan, Rehn Says (Bloomberg)
- China manufacturing remains sluggish (FT)
- Samaras vows to fight Greek corruption (FT) ... and one of these days he just may do it
- Leap of Faith (Hssman)
- Germany told to 'come clean’ over Greece (AEP)
For all the obvious reasons, China's ruling elites will do their best in the next few months to project an image of unity and self-confidence, and to convince the rest of the world that the next generation of leaders is capable of maintaining the party's political monopoly. That is, unfortunately, a tough sell. Confidence in the party's internal cohesion and leadership has already been shaken by the Bo affair, endemic corruption, stagnation of reform in the last decade, a slowing economy, deteriorating relations with neighbors and the United States, and growing social unrest. The questions on many people's minds these days are how long the party can hold on to its power and whether the party can manage a democratic transition to save itself. China is in a socioeconomic environment in which autocratic governance becomes increasingly illegitimate and untenable as its rapid economic development has thrust the country past what is commonly known as the 'democratic transition zone' where autocratic regimes face increasing odds of regime change as income rises.
The following is a comprehensive list of key events to watch over the next several weeks – events that could have very significant bearing on how the euro sovereign debt crisis evolves.