Can Pandit put Citi on sound footing?
It certainly will take exceptional leadership to restore the luster at Citi. The company took a writedown of $6.5 billion in the third quarter and said that it would take an additional charge of $8 billion to $11 billion, because of problems in the credit markets. One analyst who covers the company, Meredith Whitney of CIBC World Markets, has argued that the company will have to cut its dividend and sell off assets to restore its capital levels. David Hendler, a senior analyst at CreditSights, says Citi’s position may become so “precarious” that it will have to consider merging with a stronger bank, such as JPMorgan Chase. Pandit said he was honored by the appointment and excited by the opportunities ahead. In the conference call with analysts and investors, he laid out three high-level priorities: improving productivity, positioning the company for the future, and fostering key talent. But he declined to answer questions about specific plans for the future. “It’s two hours into this,”
