Someone is not happy at the House of Pandito.
Subject: Citi Overpaying for Research Analysts w/ TARP Money
Count Vikula, drunk on TARP funds, just kicked off week three of a research department hiring binge that has unemployed sell-side analysts partying like its 1999. One stunning example of their recent largesse: signing a mid-cap software analyst (formerly of a Piper-Jaffrayesqe boutique) to a groin-grabbing multi-year, multi-million dollar guaranteed package.Is expanding their coverage universe to industry juggernauts like CVLT really the best use of taxpayer money? At least Andrew Hall (castle aside) was accretive to Citi's EBIT.
Update: According to a spokesman for Citi:
1) We do not give multi-year guarantees.
2) We don't cover CVLT.
3) In the US, we have hired only one analyst since September--hardly a binge. (We did hire one Latin America equity analyst who is based outside US and hired a head of Latin America research based in NYC. But he is a manager, not an analyst.)