Third govt bailout of Citi could cost Pandit his job
India-born Vikram Pandit could well lose his job as the chief executive of Citigroup if the American government comes in with yet another lifeline for the beleaguered financial services entity.business Updated: Feb 23, 2009 15:38 IST
India-born Vikram Pandit could well lose his job as the chief executive of Citigroup if the American government comes in with yet another lifeline for the beleaguered financial services entity.
Citi has already received fresh capital injection to the tune of 45 billion dollars from the Federal government and officials way back in November reportedly had even discussed the option of replacing Pandit.
Pandit took over the reins of Citi in December 2007.
"... Top government officials warned Pandit that a third trip to the taxpayer trough would probably cost him his job," the Wall Street Journal reported on Monday.
The daily said that Citi is in discussions with Federal officials which could result in the government increasing its ownership in the bank.
The report noted that in November last year Federal officials privately discussed the possibility of replacing Pandit.
"But the government decided not to remove him, in large part due to a dearth of qualified replacements," it added.
In addition to 45-billion dollar capital injection, the government had also agreed to guarantee the bank's assets worth more than 300 billion dollars.