[ by Howard Haykin ]

Bloomberg reports that Citigroup CEO Vikram Pandit's abrupt resignation followed a clash with the bank's Board of Directors over strategy and operating performance at businesses, including its institutional clients group.  Following his decision, Board Chairman Michael O'Neill said.  "We respect Vikram's decision.  Since his appointment at the start of the financial crisis until the present time, Vikram has restructured and recapitalized the company, strengthened our global franchise and refocused the business."

The news of Mr. Pandit's departure after 5 years atop the company came as a shock to Citigroup employees, including senior executives. In the firm's London office, some executives emerged from a meeting and read the news on their computers and Bloomberg terminals, well before the bank's internal memo was released.

Although the departure of President and COO John Havens - Pandit's right-hand man - caught some by surprise, others noted that he was a longtime associate of Mr. Pandit, who recently told associates he expected to remain at Citigroup for several years.  "It's surprising that two senior guys leave at once but they travel together, that's their history," the Citigroup executive said.   [WSJ, 10/16/12]