Tags: Banks, Compensation, George Roberts, Henry Kravis, Jamie Dimon, Lloyd Blankfein, Vikram Pandit
Here is a fun thing we can do, which is put arbitrary numbers in a list and see how they look. Shall we? We shall.
First, here is how much various bank CEOs and assorted other miscreants made in 2011, if you don’t worry too much about what “made” and “in 2011″ mean*:
This list is, of course, inspired by this exercise by Bloomberg, ranking the top 50 highest paid financial institution CEOs. But if you’re Lloyd Blankfein or, I mean, really, Henry Kravis, you are probably not planning your retirement around your paycheck. Instead you could to some approximation view your job running your financial institution as keeping an eye on the people responsible for your private wealth, in the form of your share ownership in that institution, and Lloyd’s $16mm 2011 paycheck hardly makes up for the $155mm of lost value on his GS shares. Read more »
Tags: Citigroup, Connecticut, Greenwich, real estate, Vikram Pandit
Bloomberg reports that Uncle Vik has put his 6-bedroom, 6-bath Greenwich, CT weekend house on the market and while experts are skeptical he’ll get the $4.3 million asking price, perhaps someone will consider throwing him a bone. Citi shareholders have screwed him yet again and he could use the cash. No zen garden to speak of (cruel world) but there are “rolling grounds” and a lagoon-like pool. Make him an offer.
Tags: Citigroup, Compensation, jerks, Vikram Pandit
Y'all can kiss this ear to ear grin good-bye
In the spring of 2010, almost exactly two years ago to date, the New York Times reported that some of Vikram Pandit’s top lieutenants had noticed “a new bounce in his step” and “a smile on his face,” with one executive speculating that the Citi CEO’s cheer could be attributed to the fact that he was starting to “see the day when he will earn more than $1 a year” as being within reach. On January 18, 2011, that day came. After essentially not receiving a salary since 2008, when he pledged to abstain from getting paid until Citi turned a profit, the board of directors approved “an increase in the annual rate of base salary for Vikram from $1 per year to $1,750,000 per year, effective immediately.” It felt good. Really good. Smiles and bouncing as far as the eye could see good. Know what does’t feel so good? This crap. Read more »
Tags: Basel, Citi, probably a better idea than insourcing risk management in this case, proposals, risk weighted assets, Vikram Pandit
A thing you might want is for investors to be able to understand the financial situation of the companies they invest in. Traditionally, that is a thing that many people want, anyway.* Much of our system of corporate finance is dedicated to that and it mostly works okay.
A place where it breaks down a bit is in financial institutions. Because big financial institutions more or less take shareholder money, leverage it 10 or 30 times, and invest it all in a large and ever-changing mix of mark-to-market assets, some of which they mark themselves. Then they tell you things like “our assets have a current expected value of around X, with a daily variance of around Y” and since they’re sporting they also give you some sort of rough breakdown of what classes those assets fall into and stuff. This does not give you precise confidence about what those assets are worth today or what they’ll be worth in a week. And you can’t really find out much granular detail about the assets, because disclosing them all would be a competitive problem and/or just take too long / make your eyes glaze over. If you’re lucky maybe the banks disclose in some useful form actionable information about whatever you’re currently worried about, but you’re probably worried about the wrong things anyway.
So you do the best you can, and rely on external sources, like ratings agencies, who might know more than you, maybe, sometimes, or like Warren Buffett. Or you rely on government oversight to keep your financial institutions more or less solvent. But regulators, too, need some sort of heuristic for figuring out what assets are risky and how risky they are. After all, a big part of their job is regulating those risks, by doing things like setting capital requirements. It turns out that this is hard. So they sometimes outsource that job to ratings agencies. That doesn’t always work. Then they get all “we’re going to stop outsourcing risk regulation to ratings agencies.” That doesn’t always work either.
Vikram Pandit has his own idea and it’s pretty neat: Read more »
Tags: Citigroup, Layoffs, questions, Vikram Pandit, we're not finished here
Last month, Citigroup announced that it was mulling over the idea of relieving 3,000 employees of their commitments to the firm. A couple weeks later, it decided that yes, that sounded like a good idea, and began giving people the signal. Perhaps to a) send a message that no one should get comfortable yet and b) make it clear to existing staff holding out hope that it was true their direct report just ran out for a pack of smokes and would be “back in 10″ that no, Daddy’s not coming home, Uncle Vik announced today: Read more »
Tags: Citigroup, hiring watch, Layoffs, that's nice, Vikram Pandit
The bad news, as previously mentioned, is that Citi is firing a bunch of people. The good news, supposedly, is that if you’re looking for a gig, they’d love to take a meeting. Read more »
Tags: Brian Moynihan, counter-clockwise swirl, Czech Republic, I can't believe you're hoarding sex moves. I'm out there rubbing two sticks together. You walk around with a zippo., just a suggestion, Komerční Banka, she's faking, Societe Generale, Vikram Pandit
Something you may have picked up on is that lately? Customers are not so happy with their banks, particularly if their banks are Bank of America or Citigroup. The websites apparently never work, there are the rage-inducing fees, and there’s the general feeling that Brian Moynihan and Vikram Pandit? Don’t actually care about them. When was the last time Brian or Vik called, huh? When was the last time they did something nice, for no reason other than wanting to? When was the last time they thought to say “You look really pretty tonight”? Can’t remember, stopped counting and not since the checking account was opened. And while it would be one thing if every other bank treated its customers like they were expendable, some don’t. Take Société Générale Group-owned-Komerční Banka. Not only do they act like they really care but give people a reason to be loud, proud customers. Read more »