Pandit ‘s Plan Takes Shape

Originally Published in the News May 9, 2008 1:15 PM
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Vikram Pandit has barely had time to settle into his new job and roll up his sleeves, yet his detractors are legion. The initial reaction to his strategic plans laid our earlier today is not great, at least if you look at how the stock is trading.

Citigroup Inc. Chief Executive Officer Vikram Pandit plans to get rid of about $400 billion of assets over the next three years as he starts to whittle away at the company built by Sanford ``Sandy’’ Weill.

``There will be more’’ divestitures, Pandit, 51, told shareholders at a meeting today at the bank’s New York headquarters. The company, which lost $5.1 billion in the first quarter, has recorded more than $40 billion of credit losses and writedowns since the subprime mortgage market collapsed last year. Bloomberg

The recent respite for financial stocks ended rudely this week, although the selloff in individual names seems worse than in the XLF ETF

Pandit did not knock the lights out and his Old Lane hedge fund, but his current task, and challenges, are far different. I will be willing to give him the benefit of the doubt, but taking a stand on the stock here is another matter. The bounce appears over, and Citi’s stock is more volatile than Meredith Whitney’s mood swings.

Citigroup Plans to Shed About $400 Billion of Assets
Bloomberg
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The content contained in this blog represents the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Positions

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