Wednesday, January 7, 2009
Citi's $800 Million Man-2
"After 18 tempestuous months with Citigroup Inc., the managers of Old Lane Partners LP are looking for a fresh start. Last year, the financial-services firm shelled out more than $800 million to buy Old Lane, eager for its stable of well-regarded former Morgan Stanley executives, led by Vikram Pandit. Mr. Pandit became Citigroup's chief executive last December. ... The hedge fund's hefty price tag and quick demise angered Citigroup employees and investors, especially as Citigroup's overall financial condition worsened. Mr. Pandit reaped at least $165 million from the deal", my emphasis, David Enrich at the WSJ, 24 December 2008.
Well-regarded "former Morgan Stanley executives", by whom? Where's GSG's CNC guillotine? Are the SEC and SDNY US attorney's office looking into the bona fides of this transaction? If not, why not? What are Citigroup's directors like say, Robert Rubin doing? I think this transaction was a sham. See my 24 June 2008 post: http://skepticaltexascpa.blogspot.com/2008/06/citis-800-million-man.html.