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Pandit steps down as Citigroup CEO

Published: Wednesday, Oct. 17, 2012 1:15 a.m. CDT

Vikram Pandit, who steered Citigroup through the 2008 financial crisis and the choppy years that followed, abruptly left the bank on Tuesday, stepping down as CEO and as a director.

The move shocked Wall Street, and Citigroup offered no explanation. There had been no hint of the departure Monday, when the bank discussed its strong third-quarter earnings in lengthy calls with financial analysts and reporters.

A second top executive resigned as part of the shake-up: President and Chief Operating Officer John Havens, who was also CEO of Citi’s Institutional Client Group, which serves global companies, banks and governments.

Pandit was replaced immediately by Michael Corbat, 52, who had been CEO of its Europe, Middle East and Africa division. Corbat joined the bank in 1983, just after graduating from Harvard.

The Wall Street Journal reported that the departures followed a clash between Pandit and the company’s board over strategy and business performance, including at the group run by Havens.

In a conference call late Tuesday with analysts and reporters, Corbat and Citigroup chairman Michael O’Neill remained vague about the sudden change.

–The Associated Press

 

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