Citi CEO Vikram Pandit Sees a Difficult Recovery Ahead

[MrLoveallhatenone]

engineers at wall street?

[thegoonist]

and lol at the comments. people just love to think theyre smarter than the ceo of a major bank. youre on youtube. ffs no one gives a damn about what you think. even if you think youre right and hes wrong.

[thegoonist]

lol if u just listen to his voice you could never tell he is indian

[thegoonist]

@replysmi i think ure the one who's indian. only an indian could identify an indian accent so well. 

[adesochade]

He is a great strategist , whether he is a great leader or not but he made his way through

[bobalazs]

What's "derivatives"?

[vivecan2005]

Great testimony before panel on March 4th 2010. He is the lion on the street! 6 Attorneys asking all kinds of complex questions and he did extremely well and protected Citi's interest.

[Gloriaenlatierra]

This Pandit guys is going to be out of Citi by the end of 2010!

[abhi5a]

@Gloriaenlatierra

u only wish

[raazs35]

@Gloriaenlatierra well he is not out till today and it posted profits

[prasadranay]

My oh my, is someone J or what??? hahaha... tell ur kids to study well or the chinese wud snatch ur lunch and the indians ur dinner, whtever's left inbetween the arabs will terriorise and take away!!! hahaha

[MegF142857]

I keep thinking these PhD economists should sound brilliant, but they don't. If that is the level of talking to Wharton students, then maybe I know what is the problem. They all aren't as smart as they think they are. Hmmm.. void of content... does ring somewhat true.

[mainmanchuck]

7.6 billion dollars lost and it's considered enormous progress." LOL

[mainmanchuck]

@vivecan2005 7.6 billion are a drop in the bucket? Why do you resort to hurling stupid insults when I humiliate you? The only thing you said correctly is that my phone plan is from T-Mobile, but not the 29.99 plan. Even if I did have that plan that is $29.99 more than you currently have in your pocket. Now its my turn to hurl insults to you you dumb ass kissing dumb motherfucker. Stop taking it in the ass from your boy Pandit! And before posting your comments do your homework!!!! Indian Loser!

[mainmanchuck]

@vivecan2005 Unlike you I know who my parents are. You know who your mom is? My Whore, asshole. I have worked for Chase, Morgan Stanley & Salomon Brothers in theWallstreet area, you jerk. So dont tell me I dont know about finance. I have eyes & ears. unlike you who only knows what people tell him. Where in finance do you work? As an office mail boy? or a janitor? That qualifies you as an analyst? Do some research moron. I cant stand when assholes like this vivecan2005 talks out of his ass.

[mainmanchuck]

Citigroup release its results, and reported a $7.6 billion quarterly loss, or $1.4 billion of red ink when excluding repaying TARP and exiting government protection over assets. Citi took provisions for loan losses of $8.2 billion -- though that's down 36% from the prior-year period, and down 10% from the third quarter. Hmmm..why would I or anybody else ever invest or put my money in a company that shaky and with those numbers???

[grootrob]

Shoot the bastard! He's a lying sack of shit!

[mainmanchuck]

Well Said!!!

[mainmanchuck]

huh? What does that have to do with Citi's taking of taxpayer money at 0% lending practices? the loanshark rates on credit cards? You mentioned that it needs to be adjusted somewhere, why cause customer satisfaction? At this crucial point, they should be doing everything to tack on new customers from other banks, by providing more return and lower rates. I am sure when one of the big banks does this, their business will flourish. Citi & Pandit are clueless!

[mainmanchuck]

But why try and recoup their losses (at their own doing) by charging super inflated credit card rates to loyal customers? or turning down mortgages or helping small businesses ,they are the core of the american economy.Why not try and lure in new customers and recover losses that way? Seems to me like you and Citi do not know the concept of customer satisfaction. Just raising rates and turning away new potential customers will never help Citi. face it!

[mainmanchuck]

They alienate their customers who have been in good standing for years and expect them (clients) to just accept it? I'm sorry I dont believe in being mistreated by a bank who wants my money. They offer nothing that makes them above the rest. People are fed up by the likes of Citi. The most important thing in business is providing an important service that benefits the company and its clients and keeping them happy. Citi has done none of that, They are acting like members of Congress. Thats bad!

[mainmanchuck]

Citi & other banks have cause this near collapse of the financial industry, and they have the nerve to take taxpayer dollars at record low rates and then try and screw their customers? Arianna Huffington (who I cant stand) has a great idea, people should deposit their money into community banks. Citi, BOA, Wells Fargo, etc have abused their customers. Now people need to wake up and tell them, to go fuck themselves and remove whatever money they have and move it to community banks now!

[mainmanchuck]

This fucken idiot and other greedy fucks like him almost cause a meltdown of our financial system. He takes taxpayer money at almost 0% interest and the way he repays his customers is raising credit card rates at loan shark rates. Also denying people mortgages and getting rid of long time customers with excellent credit who pay their bills on time without any prior notice. I cant wait to celebrate when Citi fails.

[Smoker224]

He's ugly and Citi is failing while Bank of America is headed to the top...

[mainmanchuck]

Citi has screwed their clients, raising interest rates on their credit cards to ridiculous levels. Why do police clamp down on loansharkers, when Citi is doing the same thing to the consumer? Why are they above the law? They have pissed off so many people, they better make it right soon. I betcha Citi will pay for it in a big way. The stock price has hoovered in the $3.00 mark for some time. It wont be moving up soon. Not many investors are confident with Citi. I cant wait till they go belly up

[mainmanchuck]

Sure it needs to be adjusted but Citi is not being creative or helpful. Customers look for the best returns or rates. Capital One has lower interest rates on their credit cards, as low as 7% -10% while Citi is in the 17%-20% range. Citi thinks by alienating their loyal customers they can get away with whatever hikes they impose. I say drop these bastards and move your money elsewhere. its time it was taught a lesson in customer satisfaction! People listen up!! take your money elsewhere now!!!

[mainmanchuck]

really? So Citi does'nt need the American consumer because it has a huge base in over 100 countries? Who the fuck bailed them out? Was it Russia? China? France? It was the American taxpayer! If the American consumer means nothing to them, why the fuck did they stand in line for TARP money? I dont know where you been this past year, but you need to wake up and do your homework.

[mainmanchuck]

Citi's continuing practices will cause it to fail. The stock price reflects that. While other bank stocks have surge, Citi's has basically been flat. Seems like investors as well as the typical man on the street is aware that Citi management is arrogant, stupid, greedy and grossly out of touch. I cant wait for their demise.

[mainmanchuck]

Prepared in advance? for what? You must be crazy! The only thing they prepared for was a financial collapse. Without the government stealing from the taxpayer and using our money, they would have crumbled. Prepared? give me a break. Citi is a shithole, the stock reflects that. Why are investors shying away from it? Because they see it is still unstable! Wake up dude and get a reality check!

[mainmanchuck]

Why are you taking it personal? You must be an employee trying to hold on to his job or a stockholder of Citi. It is better to lend no money than lend? If banks followed that criteria they would be out of business. Where the hell do you think they get money from? As for my money I would be a fool if I let the crooks at Citi take care of it. Community banks are a safer bet!

[ripunjaya]

gr8 video....this guy really does 'talk' finance, seems like a brilliant strategist but not a gr8 leader like Steve Jobs or Bill Gates. Lets hope he can take Citi out of the shambles in which it is right now.

[rolexx]

He is a hero. Citi is now at over a 100 billion dollars market cap and is doing fine. Glad that Pandit fixed the problems with the bank!

[RHOLENOSKIE]

Where did they find this dumb assPandit ? 38 minutes of bullshit to Wharton and the dumbass did not mention the massive transfer of Petro dollars from the US economy , that hugh sucking sound that drained both US consumers and the US economy of it capital base and liquidity?

[skliu]

While I agree with you on the overleveraging of the US consumers, I have to say that a great degree of that has to do with the banks themselves. A bank is the ultimate decider of credit leverage in the economy. Since they only need to hold back 5% of the deposits that they take, essentially the major banks have the ability to determine how leveraged US can be. Take for example the ratio between the M3, and M1 numbers in the US.

[skliu]

The runup of the M3 number in the US is really the overleveraging that you have seen. I personally believe that this is a direct result of the deregulation of financial institutions. I think that Pandit hit the nail on the head that one huge cause of this crisis has been the assumption that risks are distributed. After all, these CDO's are simply investment grade instruments that any normal person could play, so no one realized that actually, most of it was being held by the large banks.

[skliu]

Also, I can't believe how rating agencies have gotten off guilt free in this. As much as banks are to be blamed by taking reckless risk, these rating agencies were the ones who rated this crap triple A. This is a lesson in centralized risk and distributed responsibility. When everyone assumes that soneone else has done the homework, this is what happens.

[tubesock7777]

Maybe they should've hired your dumbass

[rdxpspo]

He's smart...

[amareshgangal7]

If by today i.e. May 09 Worst is over I will give credit to Vikram. On March 11 When he shout mail to his employes on citi's status, DOW was at 12 yes back and from that mail, Dow started regaining... To shout mail on that day was extreamly important and I think he did it .. If we are out of worse A Lion's share goes to this man ..

[relaxedmoody]

typical crook... just look at this bastard...

[tubesock7777]

^typical response from a camel jock.

[KNIGHTRIDERETURNS]

I wont give "CITI" another penny!

take me to court mother fuckers!

[Deveiel]

This man really is a genius. There's no other word for it. I'd pay him $60m to run my company too.

[WKaliberr]

Vikram Pandit you cunt

[skliu]

Pandit's main problem is that he is not a leader, but he is an incredibly smart strategist. You can tell from this video that he knows what he is doing. He inherit a company that was so deep in shit that most CEO's probably doesn't even want to touch. He has managed to continuously jettison toxic assets through whatever means is available. Seriously, for all those bashing him, if you have a better idea, let's hear it, else you really should shut up and learn from the guy.

[skliu]

I personally cannot believe everyone who is bashing Pandit. If it weren't for this guy, Citi would have NO chance of survival at all. He raised massive amounts of capital back when he could still do it; go ask any bank CEO and they'll tell you that what he did was pure genius at a time when you cuold still get money. He slashed costs harder and faster than any other bank. He also negotiated one hell of a deal for wachovia which wells decided to fuck up and fuck themselves by overpaying.

[emmaaraar]

Currently the prime driver of markets is panic. The fact Amricans are gullible in the extreme and are as bright as sheep does not help. No rational analysis is going to get the world through the crisis. It wouold be better to let the sick institutions fail and then rebuild over time rather than prop them up. If the ecnomy has the strength of Phoenix it will raise from the ashes, but it will take a long time.

[vinniepaz730]

great video.

[nelson2283]

Great commitment Mr. Pandit, the CEO to take $1 salary and no bonuses.

[Silberdachs]

Shame it has now turned out to be a bare-faced lie. His compensation for 2008 turned out to be $38m.

Pandit is a total CUNT!

[VISHNAT]

i hope the laws of economics work and things fall back in place..

[MCKornbred]

Best talent....yeah, right. I worked at that hell hole for two years and I anything BUT loved my job...I've never seen a company with so many issues. Working at that company will literally drive you out of your mind...and it won't take long.

[raghavny80]

He is great at talking trash instead of admitting the simple truth - just like every other american, we became greedier and greedier and everyone was happy as long as everyone was getting richer disproportionately. When things started restoring to "NORMALCY", we can muddle up the hard truth with a convoluted excuse on why it happened.

[druivensoort]

He's preparing ourselves for the termination of dollar as a world currency in maximum two years...

[chootlund]

"Love what I do" - the idiot doesn't even realize what he's doing, if he did, he would puke all over himself in disgust.

[chootlund]

Poor Vikram, he feels "privileged" to accept the trash (Citi) the WASPs have thrown his way...HAHAHA.

[nomeemania]

This Bastard makes roughly around $350.000 a year

[iitzeus]

effin' porki raghead !

[usmanbr23]

you can call him a raghead but that won't stop him from making substantially more money than you will ever make in your life.

[screenflicker1]

what's he going to do about the ugly face he's got?

[daniellewis2008]

pandit shows his understanding (or lack thereof), at about 6:30... what does demand and supply have to do with arbitrage? arbitrage is to have the same asset traded at two different prices, when it should not. giving the market what it demands is trade, simple. in the former, prices are given; in the latter, price is determined through the market mechanism. come on pandit, you're worth 9 figures now? really???

[iitzeus]

Arbitrage and the demand-supply forces are closely linked.

Assuming that the various markets in which a particular commodity is traded have proper communication channels, through which price information is passed on sufficiently quickly, the prices should not vary over the time it takes to make a trade.

However, that is the ideal picture as it neglects statistical fluctuations in the asset price.

[iitzeus]

This inter-communication of price-differential across markets stimulates changes in local demand, and thereby "smoothens out" these fluctuations (which are nothing but opportunities for arbitrage), but this doesn't happen fast enough in real life.

Ergo,the relation between demand-supply and arbitrage is one of CORRELATION and NOT CAUSATION. High market volatility => larger divergence of this correlation from unity => higher and riskier opportunities for statistical arbitrage.

[reviveramesh]

If all this was known - why can't they get out of it? And where did all the money these "rich bankers" made go? ..He talks about the other side so nicely - but he is also real about the difficulties in getting there - but amazing thing is - how did let all this happen and week after week the markets are getting hammered and the warning signals and all this wisdom was there all the time inside Panditji's head!!

[superbnjt]

Something is wrong with citi recently. Not sure exactly what, but the share price has been dropping for some days.

[JackedAttack0]

Well there's actually a lot wrong...

Citigroup looks to be the next major bank to receive government aid, and it will lay off 50,000+ in the upcoming year.

[chootlund]

Its got a 3 trillion bomb on its balance sheet.

[arifnaim]

Seems like the professor does not agree with any thing Mr. Pandit says....... But this is a nice interview

[mereckless]

Vikram shares a very insightful, concise & clear picture for the basic reasons underpinning the current US Financial Crisis. Funnily, he was not there at Citi when the financial crisis first hit Bear Stearns in 2007 (He joined Citi as CEO in late 2007). Given the trouble Citi is in right now with shrinking capital base, deteoriating value of its exotic SIVs and future uncertainity of US Economy, it will be very hard even for a smart person like Vikram to save citi.

[sserc9999]

Found this video really good. However disagree with what Vikram and his colleagues in the industry say. I would say the conduct of these leaders falls somewhere between incompetence and criminal misconduct. Surprising that all they can come up with is to blame it on the regulators, when in fact everyone knew that they are making a mistake by: (a) exposing themselves too much to the US; and (b) particularly to mortgage backed securities. I am leaning more towards criminal misconduct.

[brohrox]

Isn't it wierd? No matter how complex problems and issues are, they can always be broken down to simpler components. Whether experience makes this easier or naivity does, is the question.