Vikram Pandit Gets a Write-down, Foreign Capital for His Birthday

Pandit
"I didn't even think Sandy Weill knew I existed." Photo: Photo Illustration: Corbis (pandit), iStockphoto
(hat)

Yesterday was new Citigroup honcho Vikram Pandit's 51st birthday, and pretty much everyone forgot, since this morning he had to announce the largest quarterly loss in his bank's history. To be sure, the $18.1 billion subprime-mortgage-related write-down is not as much as the $24 billion that was predicted over the weekend, but it was enough that it led to a fourth-quarter loss of $9.83 billion. But there was a silver lining: The bank says it has plans to raise upwards of $12.5 billion through a private securities sale, which includes $6.88 billion from Singapore. They also expect the Kuwait Investment Authority, Alwaleed bin Talal, and even former Citigroup CEO Sanford "Sandy" Weill to kick in with investments. That's "a huge vote of confidence on [Weill's] part," one analyst told Reuters. "I'm surprised to see his name there." We wonder if Pandit is surprised. Maybe today after work, he'll go outside and Weill will be waiting for him in his red convertible. "Me?" Pandit will say. "Yeah, you," Weill will say, and later that night they'll share kisses over birthday cake while the Thompson Twins' "If You Were Here" plays softly in the background.

Citigroup raising $14.5 billion [Reuters]