Just a week ago, it seemed that the CEOs of the big TARP banks were all safe. Their stocks were rallying, and a big capital-raising binge was underway. But all that changed when the Wall Street Journal dropped its front-page bombshell that the FDIC's Sheila Bair wants Pandit out. The news did not surface by accident. People are playing hardball. Apparently, an unsurmountable rift has developed between the two, and it has affected business. The Financial Times reports that the rift delayed an exchange offer.

This is an issue that the board needs to address immediately. Pandit really has no chance in this test of wills. He really can't point to any real success as CEO, though the circumstances he was facing were dire. And the fact is that Citigroup alone will end up with the government as a massive shareholder. One could argue that he lacks the experience to run a national consumer bank. 

For more:
- here's the article

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