The Fed Disappoints - As Does Citi

It's obviously a day for mildly-disappointing expected decisions. The Fed has cut by a quarter point, and Citigroup has decided to appoint Vikram Pandit its new CEO.

I doubt that many people can gin up much in the way of enthusiasm for either of these pieces of news. A quarter-point cut isn't enough to stave off recession, if indeed we're headed in that direction, and it's not even enough to stave off expectations for another cut at the next meeting.

Meanwhile, Pandit is a dull technocrat who has never achieved very much but who has somehow managed to maneuver his way into the top job at Citigroup. The best we can hope for is that he'll be weak enough not to put up too much of a fight should Jamie Dimon decide that Citi is ripe for the buying.

It's weird that the Pandit news was leaked without any news on who Citi's new chairman will be, though. Can't Citi even orchestrate the annoucement of its new leadership effectively?

Comments

[S R]

Felix Salmon , How does someone "maneuver" his/her way to the top job at Citi? Pandit was a top manager at MS before his HF was bought over.
Now that you know the secret, you should also try "maneuvering"... at your current job instead of writing drab and junk articles.

[jjbear]

"A quarter-point cut isn't enough to stave off recession, if indeed we're headed in that direction"

C'mon man. There's nothing that the fed can do "stave off" a recession. All it can is , hopefully, make the drop less dramatic as the mortgage junk is flushed out. Bernanke is a moron but gets thumbs-up for not pandering to the Wallstreet speculators.

[Zeon]

Live by the rate cut, die by the rate cut.

[Georealist]

Its useless to speak to the CITI issue because no matter what occurs they will survive and eventually make a fortune. The Fed may or may not stave off recession..one thing a quarter point cut does is leave them the more comfortable option of cutting again soon. The problem with a half point cut is that oif its followed by bad news next week the entire effect is blown...and they have one less cut to work with in the future. The liquidity problem has painted everyone into a corner..and there is no comfortable way out.

[lakerjock]

Pandit was second in line at MS. When he left he was given a standing ovation by of his traders.

[watdouknow]

Felix,

why don't you maneuver thru the maze of wherever you are and become a top 5% contributor to your company ?

Its one thing to blog and be critic for a living and another to actually get one's hands dirty and feet wet.

What are your basis for saying what you said here ? May be you can shed more light on the issue and bring citi out of the mess they have created by including ur sources.

[Matt B]

The article currently up on nytimes names Win Bischoff as the new chairman, and I believe that the article posted this afternoon also named him as chairman.

Not sure where the confusion on this issue could be coming from...

[Matt B]

The article currently up on nytimes names Win Bischoff as the new chairman, and I believe that the article posted this afternoon also named him as chairman.

Not sure where the confusion on this issue could be coming from...

[Michael Lofrano]

Remember when Merck was in deep trouble with the Vioxx situation sucking all the air out of what good could be thought about the company? And then what all the pundits said was the a terrible appointment to CEO: Richard Clark. Clark was considered a plodding bureaucrat with no research or clinical experience whose only experience was in managing the manufacturing side of Merck's operations. Terrible appointment, the know-it-alls said, and if truth be known, I agreed.

Surprise, surprise. That plodding nuts-and-bolts guy steadied a listing ship and took the stock from the mid-twentys to where it is today at 60 dollars a share. What's more the pipeline is looking real good, real good, which according to the same know-it-alls was dead and would remain dead till the second coming.

Though I think the bod at C are about a half-cut above a collection of fools, I still say give Pandit a chance. Chuck Prince and some glitz and supposed savvy, having studied under Sandy Weill. While most of the money center banks boomed during that time, if you were a C shareholder under Prince's rein you were better off keeping your money under the mattress.

Forget the preconceptions and give the man a chance. Could he be worse the Prince? Let me answer my own question. No.

[Yaser Anwar]

Felix,

That was the worst post you ever did. I'm glad other readers are showing disgust to your lack of knowledge. It's clearly evident form your post that you are either a) jealous, b) didn't do enough research or c) both a & b.