The management maintained in their earnings conference call Monday that they are well placed to return significant capital in the future, though Pandit this time cautiously refrained from making any promises for 2013.
Oppenheimer analyst Chris Kotowski speculates in a report Tuesday that it is possible the board decided that "Pandit's relationship with regulators was too strained and that they would increase the chance of substantial capital returns in next year's CCAR process with his departure."
Perhaps with a new CEO at the helm with a reputation for prudent risk management, the bank will have a shot with the regulators.In the conference call, Chairman O'Neill said that it was "critical" for a bank to maintain good relationships with its regulators and said that Mike Corbat was "very well viewed" by regulators for his role in winding down Holdings. -- Written by Shanthi Bharatwaj in New York.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV