Wow! Pandit takes major action already

Vikram Pandit, moving to instill a take-charge tone immediately, has announced that Citigroup will bailout seven SIVs, which will likely require moving assets on the Citigroup balance sheet next year. This is big news in that it really undermines the Citigroup-led efforts to create a SuperSIV, which may never get off the ground. In addition, it was announced that Robert Druskin, the COO, had stepped down. This after the Pandit ruled that the heads of investment banking and alternative investments would report directly to him. So the sleeves are up. Perhaps all the criticism of him has provided extra motivation. At a minimum, we should expect more executive shifts. The one guy who seems safe for now is the CFO Gary Crittenden. But you get the feeling that everything is on the table. A really definitive move would be one to boost--or conserve--capital. We'll see.  

For more:
- here's the New York Times article
- here's a profile of Vikram Pandit video
- here's an analysis of Pandit's major action video

Related articles:
- Pandit faces a tough course
- Citigroup selection imminent?