US Govt. may axe Citigroup’s Indian American CEO Pandit

April 25th, 2009 - 12:28 pm ICT by ANI  

Washington, Apr 25 (ANI): The US Government is considering axing Citigroup’s Indian American CEO Vikram Pandit, according to media reports.

The government is also set to release the results of its stress tests analysing 19 financial firms.

Citigroup, which has received or been guaranteed 50 billion dollars in government aid through the Troubled Asset Relief Program, has been stirring up a lot of questions about its health.

According to The New York Post, citing sources, regulators are mulling taking steps to show the government is taking a strong stand on banks, which may include removing Pandit, FOX News reported.

In March the White House asked General Motors CEO Rick Wagoner to step down as CEO a day before it said the automaker’s survival plan wasn’t viable.

After a disastrous 18 months, Citi posted better-than-expected results late last week, reporting it earned 1.6 billion dollars in the first quarter. In the same period a year prior, the bank weighed in with a loss of 5.11 billion dollars.

More than 1,000 shareholders convened at the company’s annual shareholder’s meeting in New York City on Tuesday to express concerns over the amount of risk the bank took on in the last couple of years.

Some directed their anger at Pandit, while others pointed fingers at Chairman Richard Parsons and board member Robert Rubin.

The government has been propping up the financial sector for several months, spending 632 billion dollars to prop up more than 550 companies. (ANI)

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