From Wall Street To Old Lane And Back Again?

Author:
Updated:
Original:

A lot of people were surprised when Vikram Pandit left Morgan Stanley two years ago. He was widely considered a possible candidate for the top spot at the bank. But like many on Wall Street in recent years, Pandit he seemed to foreclose the possibility of running one of Wall Street’s more venerable banks in favor of striking out on his own. Pandit, who had run Morgan Stanley’s institutional investment business, joined with John Havens, another Morgan Stanley big-wig, to form a hedge fund they called Old Lane.
But apparently the exit ramp to hedge fund land does not run one way off Wall Street. This morning the Wall Street Journal reported that Citigroup might pay as much as $600 million for Old Lane in an effort to hire Pandit. Citigroup’s alternative investment group has been without a leader for the last year. The move is also seen as an attempt by Citigroup Chief Executive Chuck Prince to expand the roster of senior executives within the banking giant who might succeed him in the top role.
It's not clear exactly how much of that $600 million Pandit will pocket if Citigroup goes ahead with the acquisition. But one things for certain, this guy is getting one helluva signing bonus.
To Get a Top Street Player, Citi Looks to Buy His Firm [Wall Street Journal]

Related