Citibank Shake-up Shakes Out for Vikram Pandit

Guess we know why Citigroup's Vikram Pandit felt okay about buying that fancy $17.6 million apartment in the Beresford! Dude just got a promotion. Last night, embattled CEO Chuck Prince announced he was consolidating its investment-banking and alternative-investment groups and appointing Pandit as the king of both of them. Though Pandit has a reputation for being "calm," "selfless," and "not prone to ruthless acts," as the Times puts it, the guys who were slated to be underneath him are none too pleased. Already two executives, Thomas Maheras and Randy Barker, have decided to leave the bank. Meanwhile, some people are wondering if Prince's appointment of Pandit means that he's going to resign? Deutsche Bank's Mike Mayo thinks he should. But former Secretary of the Treasury Robert E. Rubin bet the Times $100 that Prince will have his job next year. And you know how much $100 is worth on Wall Street these days.

Big Shake-Up As CitiGroup Combines Two Units [NYT]
Citibank Cut to Sell By Deutsche Bank on Governance [Bloomberg]