Pandit may become new Prince at Citi

Vikram Pandit, an Indian origin banker, is understood to be in the reckoning to head the world's largest banking institution, Citigroup, whose current CEO is reportedly planning to resign later today.

US-headquartered Citigroup, which has presence across the world, including India, is holding a board meeting here today where its Chairman and CEO Charles Prince is expected to tender his resignation, media reports have said.

Charles, who has been heading the institution for about four years, is reportedly taking the responsibility for huge losses that the bank suffered during the sub-prime crisis earlier this year.

According to industry sources, one of the main contenders for the post of CEO, at least on interim basis, could be Vikram Pandit, who joined Citigroup just about six months ago and heads its investment banking operations.

Queries sent by PTI to Citigroup spokespersons and Vikram Pandit remained unanswered.

If Pandit is appointed as Citigroup's chief executive, he would be the first Indian to head a leading global bank.

Pandit, a former professor at Columbia University, had earlier headed Morgan Stanley's institutional securities business.

The 50-year-old alumnus of Morgan Stanley joined Citigroup earlier this year after selling Old Lane, a multi-strategy hedge fund he had formed, to Citi for $800 million.

Pandit is seen internally as a savvy hands-on manager who knows the ways of Wall Street. He ran Morgan Stanley's institutional banking business and was also seen as the successor to then-chief Philip Purcell, who was ousted in 2005.

Charles could be the second high-profile CEO to lose his job due to the sub-prime crisis after Merrill Lynch's Stanley O'Neil, who resigned last week.

The weekend has been flush with media reports about the impending top management rejig at Citigroup.

The Wall Street Journal quoted unnamed people familiar with the situation as saying the bank is holding an emergency board meeting on Sunday, at which Prince would resign.