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Rats Scrambling Off The Titanic: Citigroup CEO, COO Both Step Down

Tyler Durden's picture




 

Remember when we said the Citi numbers were a miserable joke? Apparently at least two people (not Jim Cramer who absolutely loved Citi's "hairless" result) were aware of this:

  • CITIGROUP NAMES MICHAEL CORBAT AS CEO VIKRAM PANDIT STEPS DOWN
  • CITIGROUP PRESIDENT-COO JOHN P. HAVENS ALSO RESIGNS
  • CITIGROUP NAMES MICHAEL CORBAT AS CEO VIKRAM PANDIT STEPS DOWN
  • CITIGROUP BOARD UNANIMOUSLY ELECTED CORBAT TO CEO
  • CITIGROUP SAYS HAVENS HAD BEEN PLANNING TO RETIRE AT YEAR END

And so the rat procession out of the Titanic begins.

Full statement:

The Board of Directors of Citigroup today announced that Vikram Pandit has stepped down as the Company’s Chief Executive Officer and as a member of the Board, effective immediately. The Board also announced it has unanimously elected Michael Corbat CEO and a director of the Board. Mr. Corbat previously served as Citigroup’s CEO of Europe, Middle East and Africa.

Mr. Pandit said: “Thanks to the dedication and sacrifice of people across Citigroup, we have emerged from the financial crisis as a strong institution.

Citigroup is well-positioned for continued profitability and growth, having refocused the franchise on the basics of banking. Given the progress we have made in the last few years, I have concluded that now is the right time for someone else to take the helm at Citigroup. I could not be leaving the Company in better hands. Mike is the right person to tackle the difficult challenges ahead, with a 29-year record of achievement and leadership at this Company. I will truly miss the wonderful people throughout this organization. But I know that together with Mike they will continue to build on the progress we have made.”

Michael E. O’Neill, Chairman of the Citigroup Board of Directors, said: “We respect Vikram’s decision. Since his appointment at the start of the financial crisis until the present time, Vikram has restructured and recapitalized the Company, strengthened our global franchise and re-focused the business. The Board and I are grateful to Vikram for his leadership, integrity and resilience in guiding Citi through the crisis and positioning it well for the future. We wish him all the best with the next stage in his career.

“Mike Corbat has demonstrated outstanding leadership qualities and the ability to sharpen our focus on achieving strong, sustained operating performance,”
Mr. O’Neill continued. “From his nearly three decades at the Company he brings deep and varied operating experience across a broad spectrum of the financial services industry. He has managed numerous institutional businesses, including sales and trading, capital markets, corporate and commercial banking, and such consumer businesses as wealth management, mortgages and credit cards. During the financial crisis, he successfully led the divestiture of more than 40 businesses, helping to strengthen the Company’s balance sheet substantially.

In this role, he also restructured and rebuilt a number of the Company’s consumer-facing businesses, including the mortgage and credit card businesses.

“Mike is a proven, hands-on leader who is known for his focus on enhancing productivity, holding people accountable and practicing sound risk management.

He has consistently delivered impressive bottom-line results at many of our major global business units and has forged a strong track record of improving efficiency and mitigating risk while also optimizing the allocation of the Company’s capital,” Mr. O’Neill concluded.

Mr. Corbat said: “Given the considerable progress we have made in recent years, Citigroup possesses unique strengths to take on exciting opportunities around the world. With unprecedented economic, regulatory and political change, my top priority is to keep us focused on what our clients need, both today and tomorrow. The Board and I firmly believe in Citigroup’s future, and together are committed to delivering sustained profitability and shareholder returns.

“The fundamentals we have in place today are solid, and we are on the right path. In this dynamic market environment, however, we must efficiently allocate our resources and offer the products with the highest potential in the most productive markets. Citi’s businesses, footprint and talent are unmatched, and we will be relentless in our drive toward operating excellence and risk management. I look forward to working with our talented management team and dedicated employees to chart that future course.”

Mr. Corbat added: “I also wish to extend my personal appreciation to Vikram for all he has achieved. Without his leadership, Citigroup would not be so well positioned globally to tackle the challenges and opportunities ahead of us.”

A short biography of Mr. Corbat is attached to this release.

President and COO John P. Havens also Resigns from Company

The Company further announced that President and Chief Operating Officer, John P. Havens, who also served as CEO of Citi’s Institutional Clients Group, has resigned. Mr. Havens said that he had already been planning retirement from Citi at year-end but decided, in light of Mr. Pandit’s resignation, to leave the Company at this time.

“Since joining Citigroup five years ago, John has served as a trusted partner to our institutional clients, helping some of the largest corporations and governments in the world navigate through one of the most challenging financial markets in history. In the last two years he has successfully taken on the additional role of overseeing Citigroup’s operations, where he drove significant improvement and streamlining. We wish him the best in the future,”
Mr. O’Neill said.

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

 

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Tue, 10/16/2012 - 08:13 | 2893813 VonManstein
VonManstein's picture

The rats are leaving the ship! a little late though i might add

Tue, 10/16/2012 - 08:17 | 2893830 Mae Kadoodie
Mae Kadoodie's picture

Wake me when Pandit the Bandit walks out in cuffs.

Tue, 10/16/2012 - 08:18 | 2893836 LULZBank
LULZBank's picture

What does MICHAEL CORBAT knows that others dont?

Tue, 10/16/2012 - 08:26 | 2893861 Popo
Popo's picture

He knows that once you sign the contract, performance is irrelevant.  Golden parachutes and all...

Tue, 10/16/2012 - 08:33 | 2893889 LULZBank
LULZBank's picture

Some people still boarding the Titanic, hmmm...

Tue, 10/16/2012 - 08:39 | 2893899 Popo
Popo's picture

The media regards corporations as people.  When Citi shits the bed (soon) the talking-heads on TV will immedately proclaim, "Yeah, but the CEO has only been in office for a month.  Give him a chance."

As if we're supposed to consider him and his predecessor different "entities".  The company is a failure.  The CEO is irrelevant.   But the media is easily tricked.  And not one of them will talk about clawbacks of fraudulently earned bonuses.

Tue, 10/16/2012 - 08:47 | 2893939 LULZBank
LULZBank's picture

Media is not easily tricked, its the media that tricks.

The point I was referring to was that the headline is a bit too optimistic. It makes it seem like as if crooks are scared and running whereas they are walking away with millions and billions to seek new adventures.

I dont like false hopes, personally, shows lack of imagination.

Tue, 10/16/2012 - 08:50 | 2893950 Dalago
Tue, 10/16/2012 - 08:18 | 2893832 pasco35
pasco35's picture

Did they say why they're leaving?

 

 

-Frank
http://www.pascowindowanddoor.com 

Tue, 10/16/2012 - 13:05 | 2895220 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

The rats are leaving the ship! a little late though i might add

There's always another rat ready to fill the vacancy. There are always some that think there's still enough time to try to squeeze out a few more year-end bonus dollars and get out before it all disappears beneath the waves.

Tue, 10/16/2012 - 13:37 | 2895340 zhandax
zhandax's picture

If history is any guide, it works for all but the last one.....

Tue, 10/16/2012 - 08:14 | 2893814 GetZeeGold
GetZeeGold's picture

 

 

Book those profits bitchez.

 

Tue, 10/16/2012 - 08:14 | 2893818 LongSoupLine
LongSoupLine's picture

good bye you fucking fuzzy foreign fuck!

Tue, 10/16/2012 - 09:28 | 2894062 LULZBank
LULZBank's picture

Why was he fucking fuzzy foreign fuck? Local no good?

Tue, 10/16/2012 - 09:43 | 2894174 LongSoupLine
LongSoupLine's picture

It was a reference to Bill Murray in Caddy Shack.  Judging by the junks, it went over a few heads and leaned into the politically correct "out of bounds" category instead.  To which I say, fuck them.

Tue, 10/16/2012 - 10:03 | 2894470 LULZBank
LULZBank's picture

Next time, try to post the youtube clip rather.

Tue, 10/16/2012 - 08:15 | 2893823 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

if havens had been planning to retire at year end, then why didnt he retire at year end?

 

turn on the lights and the cockroaches run.....

Tue, 10/16/2012 - 08:16 | 2893825 Dr. Engali
Dr. Engali's picture

We wish you all the best. I'm sure the next quarter will be a doozy....Clawback bitchez!

Tue, 10/16/2012 - 08:20 | 2893837 GetZeeGold
GetZeeGold's picture

 

 

Ain't happening Amigo.....they just handed in their get out of jail free card. Only three exist in the world...and Jon Corzine had the other one.

 

Tue, 10/16/2012 - 08:24 | 2893855 Dr. Engali
Dr. Engali's picture

yeah I know...one can dream though.

Tue, 10/16/2012 - 08:30 | 2893878 GetZeeGold
GetZeeGold's picture

 

 

Dare to dream Amigo....it's still America....unless Bam Bam wins another four years.....then we're pretty much screwed.

 

Tue, 10/16/2012 - 09:55 | 2894440 mick_richfield
mick_richfield's picture

It stopped being America in 1913.

If there are people who can create money from nothing, and require you to accept it -- it's not America.  It's the heavily made-up and moderately well-preserved corpse of America.

Tue, 10/16/2012 - 08:16 | 2893829 doomandbloom
doomandbloom's picture

Why wont they Remain Calm?

Tue, 10/16/2012 - 08:17 | 2893833 babylon15
babylon15's picture

How long till Pandit starts his own hedge fund?

Tue, 10/16/2012 - 08:18 | 2893834 Inthemix96
Inthemix96's picture

Dont worry boys.

Its good folk like me who will make sure your name is never forgotten :-)

And I will forever pass your names on to everyone I know, and lets hope everyone I know pass it along as well.  For when the time comes gentlemen, we all have to face up to what we acheived on this mortal coil.  Just because you stood down with no doubt epic re-numeration packages in no way excuses you for your time screwing the rest of us blind.

Take it from me, your names will never be forgotten.

Tue, 10/16/2012 - 08:19 | 2893840 nmewn
nmewn's picture

Rats Overboard!!! Rats Overboard!!!

Somebody throw them a bonus before they drown!!!

Tue, 10/16/2012 - 11:54 | 2894922 ActionFive
ActionFive's picture

We can't afford to lose the talent.

Tue, 10/16/2012 - 08:21 | 2893842 timbo_em
timbo_em's picture

Golden hand shake, bitchez!

Tue, 10/16/2012 - 08:22 | 2893845 LawsofPhysics
LawsofPhysics's picture

Wake me when their fucking heads roll.  Nothing changes until then.

Tue, 10/16/2012 - 08:42 | 2893923 Ima anal sphincter
Ima anal sphincter's picture

+ a billion!!!

Tue, 10/16/2012 - 08:45 | 2893931 GetZeeGold
GetZeeGold's picture

 

 

When the GAO shakes it out it will come to a trillion easy.

Tue, 10/16/2012 - 09:12 | 2894006 toomanyfakecons...
toomanyfakeconservatives's picture

Instead of heads rolling, would trials, firing squads, and long prison sentences do? The world wants it's stolen gold back and Americans want their Republic back. The dam holding back the huge lake of evidence against these domestic and global financial terrorists is about to burst. The FED and BIS have had trillion dollar liens placed on them and their stolen gold. The end of the Federal Reserve Note and the end of the U.S. Corporation is in sight!

Tue, 10/16/2012 - 08:21 | 2893849 SDRII
SDRII's picture

He is joining the former wells fargo CFO in Cayman

Tue, 10/16/2012 - 08:26 | 2893863 caimen garou
caimen garou's picture

wonder how many more bankers will hit the road just before the elections, they may be heading for their bunkers before the sleeping people find out what exactly they have been up to..

Tue, 10/16/2012 - 09:04 | 2893989 toomanyfakecons...
toomanyfakeconservatives's picture

I recommend watching "Boiler Room", especially the ending scene when the paddy wagons and prison buses pull up to the fictional "JT Marlin" headquarters to arrest all the fictional financial criminals. Either this happens in real life for Wall Street crooks, Capitol Hill bandits, and White House conspirators or these arseholes will gladly start WWIII to cover their tracks.

 

Hundreds of top bankers have resigned or went on permanent vacations so far this year. After all, the FED and the BIS have had muilti trillion dollar liens against them and it's no secret that an AVALANCHE OF ARRESTS will accompany the fall of the Federal Reserve Note... http://tinyurl.com/cd5cyjo/

Tue, 10/16/2012 - 08:28 | 2893871 max2205
max2205's picture

Lets see how much they get for their service and for getting the hell out of the way.

What are the statute of limitations again

Tue, 10/16/2012 - 08:29 | 2893875 Bay of Pigs
Bay of Pigs's picture

"We built this Citi on rock n roll."

Jefferson Starship

Tue, 10/16/2012 - 08:42 | 2893922 Boilermaker
Boilermaker's picture

I think it was just 'Starship', at that point.  Definately not 'airplane'.

But, what do I know?  I was too busy jamming to Deep Purple and Little River Band.

Tue, 10/16/2012 - 08:31 | 2893884 venturen
venturen's picture

Are there Icebergs ahead?

Tue, 10/16/2012 - 08:50 | 2893946 LULZBank
LULZBank's picture

No, just sheeps.

Tue, 10/16/2012 - 08:51 | 2893959 monopoly
monopoly's picture

200 million customer accounts. You mean Sheeples, right. How can people be so stupid. Banking at C.

Tue, 10/16/2012 - 09:23 | 2894046 f16hoser
f16hoser's picture

How much will the Golden Parachutes (Hush Money) cost the US Taxpayer?????

Tue, 10/16/2012 - 09:30 | 2894074 Motorhead
Motorhead's picture

I wonder what Dick "Oy Vey" Bove' has to say about it all.

Tue, 10/16/2012 - 09:43 | 2894163 azzhatter
azzhatter's picture

Bove says "Libor"

Tue, 10/16/2012 - 09:54 | 2894437 astoriajoe
astoriajoe's picture

I wonder if Pandit and DSK ever spent any time together socially?

Tue, 10/16/2012 - 09:55 | 2894445 dolph9
dolph9's picture

Funny to see the Indian run off with the cash and leave the Wasp as the bagholder.

Times do change.

Tue, 10/16/2012 - 12:02 | 2894957 EZYJET PILOT
EZYJET PILOT's picture

Lads help me out with this troll, to say I'm pissed off is an understatement! It at the end of the coments section in this link.

http://www.zerohedge.com/news/2012-10-16/goldman-party-back-prop-revenue...

Tue, 10/16/2012 - 12:32 | 2895069 JuliaS
JuliaS's picture

I've just finished watching documentaries that were posted here on Sunday. I specifically liked one on Enron. The departure of Pandit could be mimicking Jeff Skilling's escape (while the getting was still good).

Do NOT follow this link or you will be banned from the site!