Chris Whalen On Vikram Pandit's HUGE New Pay Package At Bailed Out & Insolvent Citigroup: "Shareholders Were NOT So Lucky"

• Read the transcript at CNBC

Remember that TARP bailed out Citi's $800 million purchase of Pandit's failed hedge fund in 2006.  In other words, taxpayers paid for Citi's ridiculous purchase, and Pandit took home almost $200 million (his stake) at your expense. 

More detail...

Rubin and Citigroup were eyeing Old Lane as an acquisition—not for high-yield returns, but for Pandit, a potential candidate to one day run Citi. In April 2007, Pandit sold Old Lane to Citi for $800 million, a price tag that boggled the minds of Wall Street observers. Pandit personally reaped a huge bounty, what amounted to $165 million in cash. With his windfall, he bought a ten-room, $17.9 million co-op apartment on Central Park West, the former home of the late actor Tony Randall. Rubin made little pretense about why Citi had spent so much money: He publicly called Pandit “a genius.”

http://nymag.com/news/businessfinance/55035/index3.html

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In another blow to its already battered reputation, The WSJ says Citigroup plans to close Old Lane, a hedge fund it paid $800 million for less than a year ago.

Adding insult to injury, Old Lane was co-founded by Vikram Pandit, Citi's current CEO. Pandit personally netted $165 million from the transaction, which paved the way for his rise to the top of Citigroup after former CEO Chuck Prince was ousted.

http://finance.yahoo.com/tech-ticker/article/27136/Citi-Shutting-CEO-Pandit's-Hedge-Fund-Says-WSJ-More-Blowups-Likely

Comments

[john]

Citi to Buy Retail Assets in Russia

http://www.zacks.com/stock/news/55174/Citi+to+Buy+Retail+Assets+in+Russia

[DailyBail]

So citi is buying russian assets with taxpayer monies...seems about in line with everything else we know...

[DailyBail]

Vikram Pandit With Charlie Rose

http://dailybail.com/home/vikram-pandit-with-charlie-rose.html

Runs 2 minutes...

[DailyBail]

Pandit Named In Citigroup Fraud Case: India Police File FIR Against CEO Vikram Pandit, CFO Gerspach

http://dailybail.com/home/pandit-named-in-citigroup-fraud-case-india-police-file-fir-a.html

[john]

Sal DiMasi Found Guilty Of Conspiracy, Fraud, Extortion

http://boston.cbslocal.com/2011/06/15/jury-reaches-verdict-in-sal-dimasi-corruption-trial/

[snip]

A federal jury found former state House Speaker Sal DiMasi guilty of conspiracy, fraud and extortion Wednesday afternoon.
He faced nine counts and was found guilty on seven of them. His attorney Thomas Kiley promised to appeal the verdicts.
Government prosecutors accused DiMasi and two associates of scheming to use his clout to steer two state contracts worth a combined $17.5 million to the software firm Cognos in exchange for payments, with DiMasi pocketing $65,000.

Flashback: http://www.boston.com/news/local/articles/2008/01/23/dimasi_slams_obama_patrick/

[TR]

To all us taxpayers: IF WE ARE GOING TO BE STUPID,WE BETTER BE TOUGH.

[Josie]

"I feel like Bob Dole...Where's the outrage? I thought I was all alone; now I know I'm not." -Mark Haines, referring to Chris Whalen's opinions on the big banks' management (or lack thereof) and outrageous compensation, especiallly Pandit given his utter failure as a CEO. $42MM!? I thought it was going to be $1, Vik? WHO ARE THESE PEOPLE?

RIP, Mark Haines

[DailyBail]

War Powers Act Does Not Apply to Libya, Obama Argues

http://www.nytimes.com/2011/06/16/us/politics/16powers.html?_r=2

[DailyBail]

Two Refugio women have filed a lawsuit against Refugio County Sheriff Robert Bolcik and two of his deputies over claims that the officers illegally strip searched them on the side of the highway in plain view of oncoming traffic.

http://www.victoriaadvocate.com/news/2011/jun/14/gp_civilrightslawsuit_060911_142440/?counties&police-courts