Citigroup’s shares fell sharply for the second day in a row.
On Thursday, Citigroup shares fell over 26% to $4.71, marking the second day the bank’s shares have dropped so sharply. In intra-day trading, Citigroup’s shares fell as low as $4.39.
The stock fell 23% the previous day.
Here are the two big questions now:
1. Is Citigroup CEO Vikram Pandit’s goose cooked?
2. Will Vikram Pandit preside over the demise of Citigroup?
We have said for some time now that this fella Vikram Pandit is the wrong man for a difficult job.
Sure, the guy inherited a mess from his predecessor Charles Prince but what’s Vikram Pandit been doing since becoming CEO.
After all, Vikram’s supposed to be a veteran (at least in theory) of Wall Street and he has been in the CEO’s seat for over 11 months now.
Other than firing 73,000 employees this year, Vikram Pandit seems to have done little else of significance so far.
Meanwhile, the Wall Street Journal reports that Citigroup’s India chief Sanjay Nayar has quit to take up a position at private equity firm Kohlberg Kravis & Robert. Nayar will be Chief Executive of KKR India.
The Journal is also reporting that Citigroup’s Indian unit will fire over 1,000 employees with the majority of the layoffs coming from its CitiFinancial lending arm. Citigroup India is said to have 7,000 employees in retail banking, 3,000 in corporate and investment banking and some 2,000 people in its technology services outsourcing unit.