Geithner to Citi?
I’m late to Joe Hagan’s profile of Vikram Pandit, and especially this intriguing passage about the decision about whom to replace Chuck Prince with as CEO of Citigroup:
Rubin immediately lobbied to have Pandit replace him, but there was unexpected resistance from a number of board members, including Alain Belda, chairman of Alcoa, and C. Michael Armstrong, the former AT&T CEO, who did not believe Pandit was ready to lead and thought Citi had overpaid to get him in the first place. Meanwhile, Citigroup founder Sandy Weill was advocating for Tim Geithner.
Weill doesn’t exactly have a stellar track record when it comes to picking Citi CEOs: he ousted his able heir apparent, Jamie Dimon, and then promoted instead the hapless Prince. But with calls for Geithner’s resignation from Treasury already growing loud, there might be a certain logic to Geithner moving back into the banking system from Treasury. After all, Geither is de facto running Citigroup already, while Summers is de facto in charge of US economic policy — why not make both positions explicit?
Reprinted from Portfolio.com