This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pandit's Ouster By the Numbers: Street Whispers

Stocks in this article: C JPM GS MS

NEW YORK ( TheStreet) -- Vikram Pandit's performance as Citigroup (C) CEO looks solid by many measures, though there are certainly some important numbers that justify the board's decision to push him out.

None of the individual businesses within Citigroup stands out as having performed exceptionally badly during Pandit's tenure. Presumably Citi Holdings--the bad bank--has been satisfactory, or Michael Corbat, who ran it, wouldn't have been tapped to replace Pandit.

Citigroup's consumer bank doesn't have the massive mortgage exposure one sees at Wells Fargo (WFC), Bank of America (BAC) or JPMorgan Chase (JPM), so it hasn't rebounded as strongly this year for Citigroup as it did at those rival institutions. Its 2% revenue increase for the first nine months of 2012 compared to the same period a year ago isn't stellar, but its about par for the course in this weak recovery.

Since Institutional Clients Group (ICG) CEO John Havens was also pushed out along with Pandit, the obvious place to look for underperformance would be that area, which refers to all of the businesses of Citigroup that aren't consumer-oriented and aren't marked for sale or wind-down.

The Wall Street Journal reported Tuesday that the board was dissatisfied with the performance of ICG. But ICG's performance does't offer up any obvious clues either. Sure, earnings fell 15% through the first nine months of 2012 compared to the same period in 2011, but performance at JPMorgan looks comparably weak.

JPMorgan reports earnings a bit differently. It doesn't have a big segment that one could compare to ICG, but the individual businesses at JPMorgan that go into Citi's ICG don't stand out as having done much better, if at all.

Investment banking fee revenues at JPMorgan fell 15% through the first nine months of 2012 versus the same period in 2011, while Citigroup investment bank revenues rose by 9%. Citigroup's principal transactions revenues fell by 22%, while JPMorgan's fell by 53%-aided by the now-notorious London Whale trading blow up. Transactions services revenues rose by just 4% for Citigroup versus a 29% rise over the nine month period for a comparable business line at JPMorgan called treasury and security services, but Citigroup's transactions services business is more than twice the size of JPMorgan's so its hard to grow as quickly.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs