Opening Bell

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.

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72 Responses to “Opening Bell: 10.16.12”

  1. Mexi_Cant says:

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

  2. guest says:

    “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. guest says:

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

  4. soros says:

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

  5. Guest says:

    Sacre bleu!!! Papillon!

  6. Vikram Pandit says:

    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

  7. guest says:

    Tell me about RSPCA…

    -M. Vick

  8. Guest says:

    "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.

  9. WASP says:

    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.

  10. Poland says:

    Germany as benevolent hegemon?

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

  11. Greggums Smith says:

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

  12. The Sword says:

    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!

  13. j coorz says:

    Hoboken ?

  14. Silly in Philly says:

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

    Believe that.

    – Michael V.

  15. iGuest says:

    I knew our strategy of offering unpaid internships would work.

    – C Compensation Committee

  16. Panditmonster says:

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

  17. pazzo83 says:

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

  18. Texashedge says:

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

  19. Resume says:

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

  20. Guest says:

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

  21. Guest says:

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

  22. 390 Greenwich says:

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

  23. Deepak says:

    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).

  24. Gookta says:

    Vik, call me next time.

  25. guest says:

    Why do the CNBC dames have such fucked up teeth?

  26. Guestiest says:

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

    -Jeff Macke

  27. VonSloneker says:

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

    – Shark in a formaldehyde filled aquarium

  28. guest says:

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

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

  29. Put_Option says:

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

    – Piper Jaffray Financial Services Analyst

  30. Old Lane Partner says:

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

  31. Gordon Mackay says:

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

  32. whowhawhen says:

    "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

  33. TheDetailGuy says:


    I need some help restructuring and recapitalizing…call me.

    Vince Young