Opening Bell: 10.16.12

Citigroup CEO Vikram Pandit Resigns (WSJ)
Citigroup Chief Executive Vikram Pandit is stepping down, effective immediately, and will be succeeded by Michael Corbat. “Given the progress we have made in the last few years, I have concluded that now is the right time for someone else to take the helm at Citigroup,” Mr. Pandit said in a statement. “We respect Vikram’s decision,” Chairman Michael E. O’Neill said. “Since his appointment at the start of the financial crisis until the present time, Vikram has restructured and recapitalized the company, strengthened our global franchise and refocused the business.” President and Chief Operating Officer John P. Havens also resigned. Mr. Corbat, who has spent nearly three decades at Citi, previously served as its CEO for Europe, the Middle East and Africa. “Mike is a proven, hands-on leader who is known for his focus on enhancing productivity, holding people accountable and practicing sound risk management,” Mr. O’Neill said. “He has consistently delivered impressive bottom-line results at many of our major global business units and has forged a strong track record of improving efficiency and mitigating risk while also optimizing the allocation of the company’s capital.” Mr. Pandit is resigning as a board member as well.

Vikram Pandit Steps Down, Jim Cramer Loses His Mind (CNBC)
“This is a complete shock. No one expected this whatsoever,” said Cramer. “The divisions were all in very good shape, I don’t even want for a second to tell people that there was anything in the works to make this happen. There was nothing…this was the quarter where you give him a big raise, he was under a lot of pressure but he got this right.” Cramer lauded Citi’s earnings results and questioned why he would leave so abruptly. “Vikram Pandit, 24 hours ago, was the belle of the ball. This guy finally got it right. Something’s wrong here,” he said. “I don’t know what the heck is going on here.”

Goldman Swings To Profit (WSJ)
Overall, Goldman’s investment-banking arm recorded revenue of $1.16 billion, up 49% from a year ago, although 3.2% lower than in the second quarter. Goldman said debt underwriting revenue surged to $466 million from $168 million a year ago. Stock underwriting revenue more than doubled to $189 million, though financial advisory revenue fell 2.7% to $509 million. Fixed income, currency and commodities client execution revenue rose 28% to $2.22 billion. Goldman posted a profit of $1.51 billion, compared with a year-earlier loss of $393 million. Earnings per share—reflecting the payment of preferred dividends—were $2.85 from a loss of 84 cents a year earlier. Net revenue, including net interest income, more than doubled to $8.35 billion. Analysts polled by Thomson Reuters expected per-share earnings of $2.12 on revenue of $7.3 billion.

Soros Demands Germany Stop Euro From Destroying Europe (Reuters)
The crisis “is pushing the EU into a lasting depression, and it is entirely self-created,” said Soros, chairman of Soros Fund Management. “There is a real danger of the euro destroying the European Union.” He added: “The way to escape it is for Germany to accept … greater commitment to helping not only its interests but the interests of the debtor countries, and playing the role of the benevolent hegemon.”

Wells Fargo Creates Markets Unit, Takes On Wall Street (Bloomberg)
The division will be one of five main units under the Wells Fargo Securities brand and include equity and fixed-income sales and trading, commodities, prime services and futures clearing, the San Francisco-based firm said today in a statement. Walter Dolhare and Tim Mullins will oversee the division and report to John Shrewsberry, 47.

Damien Hirst condemned for killing 9,000 butterflies in Tate show (Telegraph)
Visitors to the exhibit at the Tate Modern in London observed the insects close-up as they flew, rested, and fed on bowls of fruit…Figures obtained from the Tate reveal that more than 9,000 butterflies died during the 23 weeks that the exhibition was open. Each week it was replenished with approximately 400 live butterflies to replace those that died – some of them trodden underfoot, others injured when they landed on visitors’ clothing and were brushed off. A spokesman for the RSPCA said: “In this so-called ‘art exhibition’, butterflies are forced to exist in the artificial environment of a closed room for their entire lives. “There would be national outcry if the exhibition involved any other animal, such as a dog. Just because it is butterflies, that does not mean they do not deserve to be treated with kindness.”

Reactions Ranges On Pandit Resignation (Reuters)
Peter Jankovskis, co-chief investment officer of Oakbrook Investments: “I’m surprised…I would have expected he wanted to stay around and see some of the fruits of his labors there.” Matt McCormick, analyst at Bahl & Gaynor: “He was not beloved by Wall Street. He was the accidental president. He was thrust into that position- he’s a hedge fund guy.”

Citigroup Turns To Mr. Fix-It (Deal Journal)
In its press release, the bank says Corbat oversaw the divestiture of more than 40 businesses, including the IPO and sale of Citi’s remaining stake in insurer Primerica. The release also says Corbat also “successfully restructured Citi’s consumer finance and retail partner cards businesses and divested more than $500 billion assets, reducing risk on the company’s balance sheet and freeing up capital to invest in Citi’s core banking business.” His previous roles included head of global wealth management, an operation Citi is currently paring with its sale of Smith Barney to Morgan Stanley MS +2.48%. And he had previously run the global corporatate bank and global commercial bank and once ran global emerging markets debt. Corbat’s experience, therefore, means he has touched nearly every part of the key Citi businesses, both lending and investment banking both in the U.S. and abroad.

Florida cops hunt pee-wee coach for sucker-punching ref during game (NYDN)
Referee Andrew Keigans told cops that he called the game a forfeit after West Park Saints assistant coach Dion Robinson, 43, made an ugly remark from the sidelines. Robinson was caught on camera pushing around Keigans before another coach restrained him. He then broke free, ran across the field and sucker-punched Keigans as he walked off the field, dropping the ref to the turf. Cops are still looking for Robinson and want to charge him with assault, the station reported.

72 comments (hidden to protect delicate sensibilities)
Show all comments ↓

Comments (72)

  1. Posted by Mexi_Cant | October 16, 2012 at 9:27 AM

    <—a jew who has no issues with what germany is currently doing to europe

  2. Posted by guest | October 16, 2012 at 9:36 AM

    “Something’s wrong here. I don’t know what the heck is going on here.”

    – Jim Cramer, today
    – Vikram Pandit, every day except for today since December 2007

  3. Posted by guest | October 16, 2012 at 9:37 AM

    I'm assuming he left for a higher-paying job.

  4. Posted by soros | October 16, 2012 at 9:38 AM

    germany is destroying europe and i have not found a way to proft from it… make it stop!

  5. Posted by Guest | October 16, 2012 at 9:39 AM

    Sacre bleu!!! Papillon!

  6. Posted by guest | October 16, 2012 at 9:40 AM

    “This is a complete shock. No one expected this whatsoever,” said Cramer.

    I'll be shocked if he's not shocked every time he opens his mouth.

  7. Posted by Vikram Pandit | October 16, 2012 at 9:41 AM

    Subject: Sorry everyone

    I’m leaving the bank now.

    ‘m not made to do this. If I put my mind to something as much as I do
    here to mindless text editing, copy and pasting, and getting yelled at
    for stuff other people can’t/won’t/don’t do, I would be much better off.
    It’s 6:43 a.m. on a Tuesday, and I have at least 14 more hours of work to
    do today that will not be fulfilling, useful, appreciated, recognized,
    or paid for.

    Sorry this is last minute, but it’s just not worth doing more

    My blackberry is on my desk

    Apparently that failed staffing request was fatal (no, not as in I’m
    going to kill myself, hehe, I’m just going to go enjoy life). There is
    no happiness here.

    I took all my personal stuff. No one needs to contact me for anything
    (except for a drink for those of you with my personal number). I will
    only be at my New York address a few days longer.

    Good luck y’all,

    Vikram Pandit

  8. Posted by guest | October 16, 2012 at 9:49 AM

    Tell me about RSPCA…

    -M. Vick

  9. Posted by Guest | October 16, 2012 at 9:50 AM

    "The division will be one of five main units under the Wells Fargo Securities brand and include equity and fixed-income sales and trading, commodities, prime services and futures clearing, the San Francisco-based firm said today in a statement."

    This will end well.

  10. Posted by WASP | October 16, 2012 at 9:51 AM

    It's good to see one of us white guys from Connecticut finally take an Indian guy's job. There may be hope I graduate with a job after all.

  11. Posted by Poland | October 16, 2012 at 9:52 AM

    Germany as benevolent hegemon?

    This time we'll stick with the zlotys, thanks….

  12. Posted by Greggums Smith | October 16, 2012 at 9:52 AM

    Why you gotta go and try and steal my thunder Vikram? What's next, the Indian table tennis Olympics.

  13. Posted by The Sword | October 16, 2012 at 9:54 AM

    Dear Mr. Cramer,

    I'll tell you why Pandit is taking a powder…..Havens decided he had enough crap and quit. Since he is the brain behind Pandit (who clearly doesn't possess one of his own), Vickie had nothing to do but resign. Adios Amigos….you won't be missed!

  14. Posted by Aryan | October 16, 2012 at 9:55 AM

    como ?

  15. Posted by Next bestseller | October 16, 2012 at 9:56 AM

    Man…can't wait for "Why I left Citigroup by Vikram Pandit" to come out.

  16. Posted by j coorz | October 16, 2012 at 9:57 AM

    Hoboken ?

  17. Posted by guest | October 16, 2012 at 10:00 AM

    You're an idiot.

  18. Posted by Silly in Philly | October 16, 2012 at 10:02 AM

    "There would be national outcry if the exhibition involved any other animal, such as a dog."

    Believe that.

    – Michael V.

  19. Posted by Guest | October 16, 2012 at 10:02 AM

    ?

  20. Posted by W/Extreme Prejudice | October 16, 2012 at 10:03 AM

    Figuring out who N'08 is and then taking the necessary steps to make sure he stops sullying the reputation of your demographic could got a long way to increasing your chances on that front, just FYI.

  21. Posted by iGuest | October 16, 2012 at 10:04 AM

    I knew our strategy of offering unpaid internships would work.

    – C Compensation Committee

  22. Posted by Panditmonster | October 16, 2012 at 10:05 AM

    Give me back my cookiecookie!
    Give me back my COOKIECOOKIE!

  23. Posted by pazzo83 | October 16, 2012 at 10:08 AM

    Citi : can be fixed :: federal budget : can be balanced

  24. Posted by Hakuna Matata Guy | October 16, 2012 at 10:09 AM

    They are who we thought they were?

  25. Posted by Texashedge | October 16, 2012 at 10:10 AM

    "Benevolent hegemon" sounds a bit too ominous for Germany. How about "co-prosperity sphere"?

  26. Posted by Resume | October 16, 2012 at 10:11 AM

    The eyes: Fire me?! you cannot fire me. I'm CEO.
    The smile: Thanks for the 200MM for fucking you over.

  27. Posted by Guest | October 16, 2012 at 10:12 AM

    Wasp parties are boring. Nobody cares about being included in their circle anymore. It's 2012, not a Fitzgerald novel. Let them feel important in their enclave of shrinking net worth.

  28. Posted by Guest | October 16, 2012 at 10:13 AM

    Wells Fargo, showing up to the party after the guests have left since 1852

  29. Posted by Guest | October 16, 2012 at 10:15 AM

    If NFL refs and MLB umps feared a sucker punch from coaches I feel like there would be fewer blown calls.

  30. Posted by 390 Greenwich | October 16, 2012 at 10:18 AM

    Big Head Bandeen and the Leprechaun have to go next. They are killing us.

  31. Posted by Deepak | October 16, 2012 at 10:19 AM

    Looks like Mr. Pandit took Mr. Gorman's advice of STFU or GTFO to heart, albeit it was not directed at him. So, now he can speak his mind.

    – Deepak Chopra (highly accliamed life-style guru, not to be confused with your IT lead).

  32. Posted by 2 cubes over | October 16, 2012 at 10:22 AM

    Shut up Cramer.

  33. Posted by Battery | October 16, 2012 at 10:24 AM

    What the huh?

  34. Posted by PermaGuestII | October 16, 2012 at 10:25 AM

    You just aren't drinking enough.

    -a WASP

  35. Posted by PermaGuestII | October 16, 2012 at 10:27 AM

    But all they want is a place in the sun.

  36. Posted by PermaGuestII | October 16, 2012 at 10:28 AM

    Most NFL refs look like they could beat the shit out of most NFL coaches. Just sayin'

  37. Posted by M. McCarthy | October 16, 2012 at 10:31 AM

    I'll take it under advisement

  38. Posted by Dateraider | October 16, 2012 at 10:37 AM

    I have no idea! NO IDEA! I HAVE NO IDEA WHAT'S GOING UP THERE!

    – Cramer

  39. Posted by A. Schuitz | October 16, 2012 at 10:38 AM

    <—– showerhouse is that'away. don't forget your soap.

  40. Posted by guest | October 16, 2012 at 10:38 AM

    wish I could give this more than one thumbs up.

    -nostalgia guy

  41. Posted by Gookta | October 16, 2012 at 10:45 AM

    Vik, call me next time.

  42. Posted by guest | October 16, 2012 at 10:48 AM

    Why do the CNBC dames have such fucked up teeth?

  43. Posted by Guestiest | October 16, 2012 at 10:50 AM

    Sometimes you just need to take the horn by the bulls and really get that slice of cake.

    -Jeff Macke

  44. Posted by Laxbro | October 16, 2012 at 10:51 AM

    You spelled sniffing wrong

  45. Posted by Guest | October 16, 2012 at 10:56 AM

    A little more Lebensraum, that's all they're asking for.

  46. Posted by Guest | October 16, 2012 at 10:57 AM

    Showing up to the party after the guests have left was a pretty good strategy anywhere west of the Mississippi in 1852.

  47. Posted by Guesteban | October 16, 2012 at 11:03 AM

    I'd been contemplating an exhibit with elements of love and beauty, not of butterfly stomping and death.

    Damien H.

  48. Posted by Bored Guest | October 16, 2012 at 11:08 AM

    To put their overinvestment in solar to use.

  49. Posted by VonSloneker | October 16, 2012 at 11:13 AM

    Feasting indoors for your whole life, unmolested by predators…quit your bitchin' butterflies.

    – Shark in a formaldehyde filled aquarium

  50. Posted by Silly in Philly | October 16, 2012 at 11:14 AM

    Stick with that. Will be easiee to sell than ignorance, upbringing, and entourages.

    – Michael V.

  51. Posted by guest | October 16, 2012 at 11:30 AM

    Cramer, RE Citi: "I have no idea what's going on!"

    Cramer, RE Lehman: "Things can't get any worse."

  52. Posted by Guest | October 16, 2012 at 11:36 AM

    The down votes reflect all of the Gatsby-esque wanna bes on DB

  53. Posted by Friend of a friend | October 16, 2012 at 11:41 AM

    Guess Citi is the new UBS

  54. Posted by Put_Option | October 16, 2012 at 11:48 AM

    Citigroup is the hot girl in high school that got fat, but still thinks she's hot

    – Piper Jaffray Financial Services Analyst

  55. Posted by Old Lane Partner | October 16, 2012 at 11:50 AM

    He made out like a pandit…..I mean bandit!

  56. Posted by Mandy Drury | October 16, 2012 at 11:52 AM

    It's from teething my steel meat whistle.

    – Yep I'm a Dude

  57. Posted by Gordon Mackay | October 16, 2012 at 11:58 AM

    We had a CEO? I don't even know how to build a DCF – I suck.

  58. Posted by whowhawhen | October 16, 2012 at 12:09 PM

    "Fixed income, currency and commodities CLIENT EXECUTION revenue rose 28% to $2.22 billion." So that's what we're calling now. Hey Dodd-Frank, it's not TRADING anymore, it's CLIENT EXECUTION, you don't apply. Completely different line on the income statement

  59. Posted by guest | October 16, 2012 at 12:15 PM

    The down votes reflect the comment being neither funny, interesting, nor smart, which is what get thumbs up. Also, you're an idiot.

  60. Posted by TheDetailGuy | October 16, 2012 at 12:23 PM

    Vik-

    I need some help restructuring and recapitalizing…call me.

    Vince Young

  61. Posted by Little Fritz | October 16, 2012 at 12:26 PM

    Either Germany destroys the Euro or the Euro is going to destroy Germany. This soap opera has to end…sometime…

  62. Posted by Southern Yankee | October 16, 2012 at 12:27 PM

    Worked for the Nips….I mean the Japs….I mean the Japanese. (phew, that was tough).

  63. Posted by Texashedge | October 16, 2012 at 12:35 PM
  64. Posted by Texashedge | October 16, 2012 at 12:35 PM
  65. Posted by Park Avenue | October 16, 2012 at 2:16 PM

    What joo talkin bout Willis ?

  66. Posted by PermaGuestII | October 16, 2012 at 2:45 PM

    Jay Gatsby wasn't a WASP. That was the whole point of the book.

  67. Posted by E. Hochuli | October 16, 2012 at 2:54 PM

    +1

  68. Posted by guest | October 16, 2012 at 3:46 PM

    F. Scott wasn't a WASP. That was the whole point of his writing career. My comments are in response to anyone seeking to fit in or "belong" in the company of wasps. What a sad existence that must be. Let them continue to feel important, i.e. delusional in their social bubble while the rest of the nouveaus continue to surpass them in wealth and influence.

  69. Posted by guest | October 16, 2012 at 4:22 PM

    No, Citigroup is the girl in HS that was never hot, but thought she was because her friends were hot and her parents were connected and bought her expensive clothes, and only got any bc dudes wanted an in to her actually hot friends. Then her parents went broke, she packed on a freshman 35, and her actually hot HS friends stopped returning her texts within a week of orientation, and yet she still thinks she's hot. That's C

  70. Posted by guest | October 16, 2012 at 4:23 PM

    Where are the clients executions?

  71. Posted by Flo | October 16, 2012 at 4:33 PM

    [I got nothing]

    – guy that googled "famous people with only one thumb" and came up with Megan Fox has a stubby thumb and Vince Vaughn has a penis shaped thumb

  72. Posted by Flo | October 16, 2012 at 4:37 PM

    Ha ha! Easy mistake!