Did Citi Suffer a Run on Deposits?

Vikram Pandit was on Charlie Rose last night, and was asked point-blank whether there was a run on Citi's deposits last week. Here's the exchange, at around the 10:40 mark:

Charlie Rose: So you go to them and decide that we need to do something because there's a loss of confidence, maybe people were taking their deposits out. Were there? Was it a significant run, in terms of deposits?

Vikram Pandit: As of Friday, which is really when we started talking to the regulators, there was only noise.

CR: "Noise" means what?

VP: Noise in the sense of deposits coming in, there's deposits going out, meaning the usual kind of activity.

CR: But not a significant number of people of significant wealth coming and saying I'm worried about Citibank, I've seen this stock collapse, and we'd better get our deposits out of there.

VP: That's right. And so from that perspective, again, with 300,000 people around the world knowing exactly the strength of the bank, we did a pretty good job of making sure we had informed our clients about the strength of Citi.

This falls short of an emphatic declaration that there was no run on the bank -- but it goes much further than any official communication I've seen from Citi (C) about what's been happening to its deposit base. It's information which is very important to the market, and Citi stock is up another 11% today, possibly partly as a result.

So, well done to Charlie Rose, for getting this much out of Pandit. But if Pandit was willing to say this on national TV, one wonders why Citi's communications team couldn't have said much the same thing officially, before the bailout, when the markets were much more worried about the deposit base.

(HT: Kedrosky)

Disclosure: No position on any stocks mentioned.

Comments

[Daryan:]

Wow, this is reckless at best, defamatory at worst, and possibly illegal. Isn't this kind of stuff how hedge fund managers et al end up trying not to drop the soap?

2008 Nov 26 03:28 PM

[Looking For...:]

Ditto. I am thinking Felix got denied when he applied for a Citibank MTVu credit card! I am officially swearing off financial blogs after reading this slanderous dreck!

2008 Nov 26 03:44 PM

[Nikola:]

Hey, I got declined for a Citibank MTVu credit card and I am with Felix 100%. Down wit' Citi!

But more amazing than the alleged runs on deposits (hello?) is the fact that this guy is talking about what "we" need to do with assets that he ("the banks") don't want.

Hey, Bandit, I mean, Pandit, what WE need to do is for us to decide. You're NOT part of WE. You're part of "they," the banks. So go back to your penthouse corner office, and take in the view. And shut up.

2008 Nov 27 01:12 AM

[Emerald:]

Felix, since you make no disclosure on your stock position, we must assume you are talking your book. Be prepared for a large short squeeze.

2008 Nov 27 01:57 PM

[Kunst:]

Do any of you have real opinions, backed by some facts? Or are you just here to bash the author, who I really don't think can move C to his benefit?

2008 Nov 27 07:51 PM

[Hedged In:]

This is a useful and well-written article, with no clear agenda. It's highly unlikely that Citi would be allowed to default, but it is important to know whether the catalyst for action was a run by wealthy depositors.

2008 Nov 28 08:55 AM

[HSS:]

Felix, Citi is not going down so cover your short whie you can and move on.

2008 Nov 30 02:37 AM