Turnaround King?
–Could Citigroup really be on the mend? After years of disappointing results, Citigroup looks like it had a genuinly good first three months of this year. Analysts were expecting the bank to basically break even, instead the company earned $4.4 billion. Sure, nearly a billion that came from positive marks, but there’s still plenty of profit there that Pandit can take credit for.
–Despite Citi’s good numbers, Pandit is still not done revamping his management team. Ned Kelly is now the head chairman of investment banking global banking. It’s a demotion for Raymond McGuire, who had been seen as an up and comer, and used to be the sole head of the unit. UPDATE: Citi’s PR folks say this is not a demotion for McGuire, who still has the same title as head of investment banking. Kelly has been added as the new chairman of global banking. Not a replacement, but an addition. But chairman seems to be above head, in my book. And Kelly’s new role seems to add a layer between McGuire and Pandit, so my read it is at the very least a slight downsizing of McGuire’s role at the bank.
–How much did the higher ups at Goldman know? Someone is going to lose their jobs over this. The question is it going to be Blankfein. So the hot potato blame game has started. Goldman tells the Wall Street Journal that Blankfein and other top Goldman brass were not aware of the Abacus deal at the center of the SEC case. But the New York Times says according to their sources Blankfein and other Goldman leaders took an active role in the firm’s mortgage underwriting unit.
–The fate of financial reform in the post-Goldman case world: Will it be a slam dunk? Frank tries to push the ball up the court.