With the bank stress tests wrapping up, sources tell The Post that regulators think they might have to make the bold move of removing Pandit to signal Washington is taking as hard a line with the banks as it did withOf course, one has to question the credibility of Post sources, however all signs are pointing to a growing antagonism between the administration and the two CEO, increasing seen as a symbol of the failed Wall Street of Q4, as opposed to the high flying Wall Street of Q1 (Q2 which will exclude December "write offs", unless somehow the banks pro forma all their losses in a February 29 hypothetical date which will hit the books in 2012, and will have much less one-off sources of taxpayer subsidized revenue will be yet another story). when it effectively ousted GM CEO .
Amid criticism that Citi hasn't moved fast enough to clean up its balance sheet and speculation that Citi may need to raise more cash amid rising writedowns from consumer debt, sources said there's a growing sense Pandit might have to be sacrificed.
Such a move isn't without its own risks, though. In an interview with The Post, Citi CFO said, "Replacing [Pandit] would be dramatically de-stabilizing both for Citi and the system."
Replacing Pandit might be the pound of flesh some shareholders want, but it's possible such a move would do little to help the firm. Indeed, sources said possible successors like Kelly are loyal to Pandit, and others like Gary Crittenden, the new CEO of Citi Holdings, may not be willing to take on the role.
In other news, readers may want to line up in front of Citi HQ early next week, where the market's real bellweather, Geoffrey Raymond, will be collecting inspirational annotations for the completion of his latest masterpiece, the annotated Vikram (available for pre-sale).
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