Pandit’s future in Citi hangs in balance

Any decision on Citi's leadership would be led by Treasury,which is about to take a 36% stake.

Citigroup chief Vikram Pandit will try to convince investors that the financial services major is on a recovery path,following fresh concerns about his future in the company,a media report said.

“Vikram Pandit,Citigroup’s Chief Executive,will on Tuesday strive to convince investors that the company is on the road to recovery amid fresh questions over his future at the financial group,” the Financial Times said in a report.

Ahead of Citi’s annual investor meeting scheduled for today,it has emerged that senior officials at the Federal Deposit Insurance Corporation (FDIC) privately discussed who might replace Pandit if the bank needed more government aid,the report noted.

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Quoting a person familiar with the matter the report said,”It is unthinkable that Vikram could stay on if Citi requires more federal funds. It is prudent to be thinking about different scenarios.”

The FDIC is only one of the regulators,which has a say on whether Pandit should steps down if the government bails out Citi for the fourth time in six months following completion of the “stress test” of its health,the daily said.

Any decision on Citi’s leadership would be led by the Treasury,which is about to take a 36 per cent stake in the firm and would sanction further capital injections,it added.