[ by Howard Haykin ]

Vikram's internal memo to his Citigroup troops was short and sweet - and very telling - i.e., revealing.  Follow along as we offer our observations, with your own copy  - go to:  [Pandit Memo, 10/16, WHO'S News].

Short and Sweet!   That's how I'd describe Vikram Pandit's farewell memo sent via email to all Citigroup personnel.  Pandit used 156 words - excluding salutation and signoff - which he expressed in 8 lines and 4 paragraphs. 

Vikram used words like "extraordinary", "privilege", "honor", "turned this company around" when describing his 5 "extraordinary years.  Vikram expresses his faith and optimism in the bank's personnel, in the strength of the bank's "200 year old formula", "clients at the center", "responsible finance" "utmost confidence", "proud".

Tell-Tale Statement.    When expressing confidence in the future, Vikram spoke these words:  "By going back to the basics of banking to serve the real economy,...."

I'll wait a moment to let that sink in.  Okay, here we have Vikram Pandit, (1) a hedge fund manager by trade, acknowledging that the company is (2) returning to its roots - BANKING.  We know that Citigroup already has agreed to (3) sell off it's remaining stake in Smith Barney to Morgan Stanley.  What other significant broker-dealer entities does Citi have after Smith Banrey?    Finally, we learn on resignation day, that (4) a successor has already been named - and (5) he's been a commercial banker for his entire 28-year career.

The Take-Away.   Let's face it, Vikram Pandit had discussions with members of the Board in advance of October 16 - his resignation dady.  And, notwithstanding the ancillary excuses about his conflicts with regulators, or his screw ups with some operating matters, Vikram is told point-blank that the firm is getting out of securities - brokerage, etc. and returning to its banking roots.  This can only mean that Citigroup has got to install a commercial banker in the corner office, and there's no position for a hedge fund manager.

Say what you will, but understand that Vikram Pandit was forced out.  Hopefully, Vikram has not left much, if any, money on the table - i.e., given up his contractual right to certain "golden parachute arrangements that would kick in only in the event of a termination or firing.  We will just have to wait for further disclosure on the matter.   Until we hear furhter news,.......