The 57-year-old Vikram Pandit has not given an interview in almost two years since he was ousted as chief executive of Citi. At any large US company, where supine boards are often the order of the day, this would have been an unusual event. At a bank that used to be the biggest in the world, and whose operations span 100 countries, it was stunning. Perhaps this explains why both Citi and Pandit have maintained their separation was amicable.
With many of his new interests, Pandit says he is looking to remove “frictions”, which happen to be the way Citi and other banks make their money: for example, the middle men that sit between a big bond manager and retail investors and charge a fee. As he points out, the wealthiest individuals are not saddled with these costs to the same extent.
“If you are a large, wealthy multi-billionaire you can put that into an M&A transaction and earn 15-20 per cent. If you’re an ordinary American you earn 2 per cent on your investments. That disparity has to be democratised. It’s now possible to take those frictions out. That is an important concept because it expands the number of people who are in the financial sphere. That has a positive growth impact. At the same time it is about unmet needs.”
I ask how he finds his investments. “I have an office and it’s Grand Central Station: everyone comes through there. That shouldn’t be surprising,” Pandit adds matter-of-factly. “That’s just the nature of things.”
The bill arrives and, without thinking, I take out a Citi credit card to pay. Pandit seems pleased. He still has a lot of his wealth tied up in Citi stock, though he will look to sell if it rises a couple of dollars.
“Wishful thinking,” he muses.-from FT
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