The ouster of Vikram Pandit, and what that means for big banks Research Paper

The ouster of Vikram Pandit, and what that means for big bevels - Research makeup ExampleThis paper will address Pandits ouster, and describe how this major event in Citigroup will influence the future operations of Citibank, as head as other banks in the same industry. Mr. Pandit took everywhere as the banks CEO in 2007 when the bank was in a financial turmoil, but slightly recovered the profitability of the bank in 2010. Under Pandits management, much of Citis resources were dedicate for future profitability. Expanding market to the developing countries was a prospective Pandit held (David, Suzanne, and Dan 1-2). The reasons offered for Pandits ouster emanate from struggles to recover from wherefore(prenominal) financial crises at the bank. Mr. Pandit was forced to resign after the board of Directors at Citi bank felt that he managed the bank poorly. The board also claimed lack of appropriate communication from the CEO on vital furrow matters. During the tenure of Pandit, the shares of Citigroup fell by 89%, which resulted in a revolt by shareholders over his decision maker pay. The Federal Reserve also rejected Citigroups plan to purchase back stock. In addition, in that location was a $2.9 million write-down by Morgan Stanley, of a brokerage joint venture. All these unfortunate happenings stinkpot be numerically represented, but most probably point to poor judgment, rather than day-to-day vigilance of specific business units (David 2). Michael Corbat, Pandits replacement, may not perform as Pandit, who was credited a well performer, who knew the positions of the bank inside out. Corbats strategic directions for future of the company are also still uncertain. many a(prenominal) challenges Corbat, as he will feel the pressure of impressing quickly, since the banks shareholders are now forestall about the banks uncertainty. Citigroup investment bank is a potential victim of shrinkage. It is enormous, but with testy revenue since the times of th e financial crisis. This continued decline has to be addressed in order to put on stability again. Mr. Corbat will also have to deal with the black box reputation of the bank. Observations show that the banks disclosures are not as comprehensive as those of other banks are. In order to repossess the confidence of investors, Corbat has to tackle this issue also. Consumers should expect to feel the difference between Citi managed by Pandit, and Citi managed by Michael Corbat, Pandits successor. This kind of transition at Citi may not positively influence on the financial health of the US banking industry, and the general US economy. This is because Citi is a bank that has been considered important by the regulators, amid financial crisis. It is a disturb bank, and still struggles to gain stability. Pandit was a CEO that had set out to turn around the case of Citi bank, and gibe its total economic recovery. However, by firing such a dedicated CEO, Citi bank risks continued vulner ability to financial crises. The shareholders of Citi bank continue to be adversely repaired by the banks protract stagnation in financial instability. However, more parties will feel the pinch of this as it will affect the whole banking industry as well as the national economy. Citi is in the process of repairing its balance sheet, it is then expected that it will cut down on customer lending, in a bid to lay aside more. Its customers will not access