From: vikrampandit@citi.com
Sent: Monday, November 17, 2008 11:18 AM
To: Vikram Pandit
Subject: Today’s Town Hall
Dear Citi Colleagues,
A few minutes ago I concluded a Town Hall meeting in New York. I shared
with you what I shared with the Senior Leadership Committee last week,
and you’ll be hearing more about it from the leaders of your
organizations in the coming days.
There are a few points that I would like to reiterate:
* All of you have done an outstanding job in the last 11 months -
we are in a far stronger position going into 2009 than we were going
into 2008. And we are even better positioned for 2010.
* Our underlying business remains strong and revenues have been
stable.
* We have shrunk our balance sheet and sold businesses consistent
with our strategy. We will continue with these efforts.
* We have been very successful at bringing our expenses down.
2009 expenses are expected to be between $50 and $52 billion, down
almost 20 percent from peak levels. We expect headcount to be down 20
percent in the near term from the peak of 375,000 at year-end 2007.
* We have significantly reduced our risky assets while putting the
company in a very strong capital position. Our new risk management
organization is much stronger.
* We have spent the last year “getting fit,” are more streamlined,
and are in a strong competitive position to take advantage of future
opportunities. We will be the long-term winner in the industry.
I would encourage you to view the presentation at
www.citigroup.net/townhall.
The coming year could be a difficult one for our clients and customers.
Citi needs you to maintain your focus on helping them succeed because
now is the time when lasting loyalty is earned.
And in return you can have confidence that I and the Citi leadership
team will stay focused on strengthening Citi and positioning all of us
to benefit when conditions inevitably improve.
Vikram
Yea ok!
In case anyone forgot:
“This firm has a history of facing adversity and delivering. We have a long track record of pulling together when times are tough and then taking advantage of global opportunities. We are now on the right track to put these last two quarters behind us.” – Dick Fuld
Shittygroup will always and forever be shitty.
See? I’m doing something! Really! I deserve to be head of this bank! Because I’m doing something! We are “competitive” (undefined, of course) and you can believe we will stay “focused” (on preserving our asses) because we have “strengthened” (again, undefined) our “risk management organization”.
did I mention – I’m doing something! I’m taking action! I’m the decider!
Too flatulent, didn’t read.
I remember when “shrinking balance sheet” was a bad signal.
Oh how times have changed.
Bid it up zombies!
Vik may not be allowed to eat bull, but he does a good job slinging it
Hope he hired bodyguards, I’m sure there’s a lot of disgruntled ex-employees that hate his guts now.
So the fun-damentals of Citi are strong?
disclosure: owner of Citi Dec 5 puts
Translation: I fucked this company up so bad our only hope is that Zombies come in and take over the place.
Sticky ViKi = stick a fork in, he’s done
Parking should easier at Citi
I used to do product analysis for them and the other big kids on the block – Citi has so much garbage CRA and Heloc/Helo crap – plus they where a major Correspondent – they were buying trash from every little broker and bank in the country – they have not even begun to show their hurt…
Bio: http://tinyurl.com/3v5s4e
Watch for Citi to break up – I called it last year – has to happen – they are under valued if you can afford to go long. I called BofA and CW, as well as JPM and Wamu, but I thought that one would happen last spring.
Citi paid $800 mil for Old Lane, or 20% of their $4 bil of AUM. Investors in OL had a clause that said if 3 of the top 6 PMs left, they could pull their money. Well, Vik pulls 3 of them, OL AUMs walk. OL closes.
Vik personally made $165 mil from his OL sale.
So it’s Vik: +165, Citi -800+. And counting.
short version of the speech
“Hey guys, I’m firing 53,000 of you guys.
That way we can continue to pay my mega million dollar compensation package as well as some of our other executives.
Also buy letting these idiots go, we can cover more of our losses from bad management decisions and make ourselves look better on paper. Honestly I really don’t a fuck about any of the peons that worked for citi and I am only going to look out for myself because nobody else matters.
On a good note, I’m opening a chain of 7’11′s and will be buying another 15 million dollar vacation house.”
Bess, whatever happened to ValueStockTips guy?
Hope he didn’t stay long GS.
This really sucks, should I just go to medical school???
Citi should hire Tuong Lu Kim as their new CEO
He is the owner of “City Wok” in South Park.
Imagine how much fun it would be listening to that conference call…
“Dear Shitty Colleagues”
@3
“…and you can believe we will stay “focused” (on preserving our asses) because we have “strengthened” (again, undefined) our “risk management organization”
What do you mean “undefined”? He is focused on preserving his ass by strengthening his risk management organization by hooking up to the government tit. Taxpayers will now take all the risk and shitty will get any profit. Sounds pretty strong to me. Shitty, but strong. You’re just jealous because you’re too small to use government to rob people :)
@16 But who’ll save Shitty from the Mongorians then?
I am actually just sick and tired of hearing Citibank try to use the “these aren’t the ‘droids you’re looking for” tactic – the corporate speak of “we’re doing GREAT! We are so much stronger! We are focused!”
It’s like waiting for Edwards to admit he was having an affair. You knew it, he knew it, it was just a matter of when he’d admit it to the public.
No mention of slicing 50k peoples – no “i’m sorry we are taking such action but its necessary to our business’ future” or “these reductions in force are regrettable but we have to do this.”
Vik is a unapologetic cold hearted mofo…
Was anyone there – did Vik smell like curry?
@19…Vik sounds like more a consultant than a CEO…dude is a cheerleader but not a leader.
http://www.timesonline.co.uk/tol/news/world/africa/article5172770.ece?token=null&offset=0&page=1
Will bankers without jobs take up piracy?
The somalis seem to be out on the high seas living the dream.
yaaargh!
Well all those Laid off Citi people
can always join Primerica, Citi’s massive multi level marketing pyramid scheme with 250,000 “salespeople”.
http://www.youtube.com/watch?v=tQosoXnbPUI
http://www.primerica.com/public/
@22…to hell with those Skinnys…I hope a tomahawk finds its way up their scrawny asses.
Jesse Jackson voice: “KEEP HOPE ALIVE. *POUND* AND KEEP HOPE ALIVE! *POUND POUND* AND KEEP HOPE ALIVE! *POUND*”
Bar none, bitches.
I worked for Smith Barney for nearly ten years before leaving to become an RIA roughly one year ago. I cant even describe the stupidity I saw at that place via Citi. The place sucked. Terrible mgnt that you couldnt trust. They treated people like shit and now they get what they deserve. It brings me great pleasure to know all those slime balls in NY have lost their ASSES on the stock while I sold my shittygroup at $54.
I worked for Smith Barney for nearly ten years before leaving to become an RIA roughly one year ago. I cant even describe the stupidity I saw at that place via Citi. The place sucked. Terrible mgnt that you couldnt trust. They treated people like shit and now they get what they deserve. It brings me great pleasure to know all those slime balls in NY have lost their ASSES on the stock while I sold my shittygroup at $54.
@28
where do you work now?
Ameriprise?? (hahahaha)
Oh by-the-way FCs…stay tuned for your new, new pay package coming out in 2009.
I’m like the Wayne Gretzky of American Sex
I hear there are excellent opportunities in piracy in Somalia.
I believe it was Maynard G Krebbs that said, “In the long term we are all dead”.
And some are dead in the short term. (C)
“* We have been very successful at bringing our expenses down.
2009 expenses are expected to be between $50 and $52 billion, down
almost 20 percent from peak levels. We expect headcount to be down 20
percent in the near term from the peak of 375,000 at year-end 2007.”
He should get kicked in the junk for saying this in the same email as this:
“The coming year could be a difficult one for our clients and customers.”
and didn’t comment on the layoffs…
Too Vishnu;did’t read
Is this guy for real? 50,000+ people who got that email are going to be wiped out and he is telling them to pony up for Citi? What a dick
You can hate me now,
But I won’t stop now,
- Vik “Doing obnoxious diddy dance” P
@20 — look again, he made the reference to reduction of “headcount” after congratulating everyone on doing a great job. It’s just that 20% of the heads got chopped off–I’m surprised he left out “what do you think of my methods Captain Willard”.
@36…yeah, the email is so smug its sickening…
I work a Citi and I have done literally nothing for 3 years. Its hilarious. The bottom is when I get canned.
Why does everyody hat Citi?
@38…that is not talking about layoffs and making tough decisions – he makes FIFTY THOUSAND people a fucking P&L line item…
How about, “we are taking significant measures to reduce our headcount because of the extraordinary situation facing our business and industry. Therefore to strengthen our business we had to make the very difficult decision to make such large reductions in our workforce.”
@38…that is not talking about layoffs and making tough decisions – he makes FIFTY THOUSAND people a fucking P&L line item…
How about, “we are taking significant measures to reduce our headcount because of the extraordinary situation facing our business and industry. Therefore to strengthen our business we had to make the very difficult decision to make such large reductions in our workforce. We understand this is very hard on those affected and that is why the decision was such a difficult one.”
He never mentions that it was a hard decision or that it was regrettable to toss so many people…just we are reducing and these are our numbers and we are going to be stronger.
@42
Do you want him to pat everyone on their backs on the way out?
@44: I sorta hear what #42 is saying. He needs to acknowledge that this is a difficult decision that affects people’s lives, not just a “stop making color copies” edict.
What makes it so obnoxious is that he uses such “corporate speak”, yet misses a fantastic opportunity to put on his “concerned look” face and showing gravitas. It mostly looks like he just wanted to take action, any action, and whether it’s “no color copies” or “50,000 of you will be unemployed” seems to make no difference to him.
@40 How do you like your corner office?
No, but you don’t send an email and not mention it in more direct terms and blow sunshine up people’s ass or piss on them and tell them its raining…the list goes on.
He makes it sound like things are going well and they are gettin stronger – you shed 50k people things are not well and you should not act that way.
He’s a punk a cheerleader. They should dump him in Pakistan and let him run al qaeda so he can run them into the ground like he has Citi.
@45…spot on.
- 42/43
Bad Hindu = Fat company + poorly managed – 50,000 employees . Happy Holidays from Citi
@49…very Einsteinen…V=C-50K=$5/share
Where is Dollar Dom in all this news? Tell that porker to send out a note!
@43 that was the point . . . especially if you’re one of the unlucky–I guess you should see the movie.
Sorry 51, I only watch good movies. Go Jo&C.
If Citi mgmt had a spine they would go the way of GS, Deutsche and UBS and give up bonuses and announce it – but silence…vey scummy.
Sorry 52, I guess I hit a nerve when I wsasn’t even trying . . . I guess it’s personal, hope you get over it.
they’re over it. probably out of a job too.
Sad fact is that Wall Street has been oversubscribed for quite a long time. Only those that can’t see the forest through the trees are so shocked that “headcount reductions” are coming to a theater near you. Even prior to the cat (fucked valuations, instuments so complicated the people originating them don’t understand them let alone the tools marketing them) escaping the bag (the Wall Street gangbang culture in which nobody asks any questions so long as the party’s still going) it was apparent this ship had taken on too much weight.
It’s mildy entertaining to see how many posters are pissed at Vik for being as greedy and self-serving as the rest of the street. HE PROFITED AT THE EXPENSE OF OTHERS…GASP! Oh the humanity! I suppose the gangbang isn’t as much fun when you’re the one that’s being passed around. Welcome to the other side of capitalism. Be sure and thank those of us that are providing the $700B worth of lube (from our collective paychecks) for making your transitions a little less painful than it would be otherwise.
Get down,
HH
HH = Huge Homo
@57
You can call me anything you want…but you can’t call me unemployed. Ouch! That’s gotta sting a bit, no?
Note: In reading my own post it occurs to me that I may have went a touch overboard with the sweeping generalizations. In actuality, the post only pertains to about a third of the streeters I’ve ran with. The other 66% probably shouldn’t be painted with the same brush.
For the third of you that can’t find your asses with both hands…do your homophobic worst.
Somewhere in Saudi Arabia a wealthy prince is counting his losses on his investment.
I work at Citi and I think it is a wonderful organization. We have terrific opportunity in front of us and we are going to capitalize on it.
You can hate as much as you want. The real issue is that you guys dont have a job so you sit and blog all day. Your cynicism is the reason for the demise of this economy.
If only you could channel you pessimism somewhere else, all of us will be much better off.
As for Mr. Pandit, I think he is a great leader and is doing best for the stakeholders of the company. If it means you have to lay-off people, then thats what he has to do. All the other firms are laying off and I dont think Citi is any different.
60…troll or total fucking loser? You decide…
Hey #60 – who’s asshole did you crawl out of?
Regards,
Unemployed Cynic Channeling Pessimism All Day And Promoting Demise Of Economy
61 I was simply going to guess Indian.
61. You will see Citi’s Earnings next quarter.
Citi’s stock is at 9.50. It is below book value. a great buy.
@64: “Book value” hahahhahahahahaha! Would that be before or after all the assets are marked to market and/or all the off-balance sheet liabilities are considered?
@65…yup.
Citi is the Titanic…Vikram is just throwing deck chairs off it (sorry laid off employees).
Next qtr Citi sleeps with the fish.
63. you are a dumb homo
@60
if no one ever marked their toxic crap and just “channeled their pessimism” elsewhere, everything will be fine… right?
good luck job-hunting… i hear bear stearns and lehman brothers are looking for optimistic people like you. maybe citadel?
68. thank you ver much, but i have a job that is better paid than all your ancestorial wealth combined
68. you need help.
BRING SANDY BACK! Ha-Ha
It’s a whack job! The big banking powers and the Federal Reserve are like the Mafia Families – a big syndicate.
They whacked Lehman, they whacked Morgan Stanley, they will take over banks right and left – with JPMorgan and Goldman Sachs at the lead:
http://yourmortgageoryourlife.wordpress.com/2008/10/06/did-jpmorgan-almost-fail-jekyll-island-investment-still-paying-dividend/
It’s easier for the Feds to control of couple of banks as opposed to hundreds. Mr.Mortgage called it the “Quickening” – only the selct few will survie to rule all.
Citi and BofA are going down too – won’t be long.
Hearing rumors Jamie Dimon might make a power play with his new found big bucks…
71, is that you laughing Sandy?
A bit late but #60 = most definitely Indian.
“You will see”, “ancestorial wealth”..yep, I know a FOB when I see one.
I don’t see how there isn’t a revolt from within Citi. A revolution. A peasant uprising. The employees are critical to the company’s existence yet are treated like shit again and again. 50,000 more layoffs while fat-faced Pandit smirks out how Citi employees need to focus on customers? Fuck him. Give me a break. If ever there was a situation for employees to unite…
Ugh. The man could be the root of all evil, but it is completely incorrect and horribly offensive to chalk it up to his ethnicity. Let’s keep it about his words and actions, if it’s not too much trouble.
Relax, I’m half-cast. Well-spaced genes and all that.
@60
So you don’t think it’s a big deal that you’re sitting in 388-390 and have watched about 75% of the people you worked with 18 months ago leave with cardboard boxes, and all your CEO says is “you should be happy, you’re helping us outperform the market by 50 bps!”?
also @60,
How do you feel about the fact that the people who got cut in the first round got better severence and competed in a better job market than those in the later rounds (and will probably get a bonus from the distressed asset fund they joined)? Hypothetically, if they let you go in the next round, one of the bottom 10% who got let go in the first round will have effectively taken your job, while you’re stuck competing with the middle 10%-75% (on average) from EVERY other bank on the street? Makes you think doesn’t it…
@60 – You will learn. I used to work at Citi (2002-2005) and it was precisely because it was so fantastically badly managed that I thought it was fantastic. I mean – I was the one guy in my team who got shit done! I was the hitter! I could actually get IT to install stuff on my computer when I wanted! The print room knew me and liked me, so they actually bothered printing stuff for me! Woo-yeah, what an opportunity! Go Citi!
Then I was offered a position at A.N.Other firm (fairly obvious, no?). Imagine my amazement when the team I was hired into didn’t have to spend half the day fighting internal battles. Imagine my joy when I didn’t have to put endless presentations together for any amount of senior (and yet still very middle in both intellect and position) managers – only mildly galling because I was good at that.
The problem with Citi has always been too many chiefs, not enough Indians. If it’s Count Vikula who sorts this out with the 50k new fires, go Vik (and what a desperately punning irony in that). Otherwise Citi will go on being what it has been since the merger – a dysfunctional marriage with fighting, lazy, abusive parents where the children do all the work and yet, weirdly, love the parents for it.
-Wharfer
74… I am your DAD!
say hello to big daddy
HCjwJl I really liked your blog article.Much thanks again. Cool.