Government May Fire Pandit

FDIC officials have debated sacking Citigroup (C) CEO Vikram Pandit, FT report. The leak comes out just as Citigroup is holding its annual investor meeting, and amid a wave of fresh bank fear following yesterday’s Bank of America results.

The question of whether he’ll be forced to go seems to hinge upon whether Citigroup will net yet more government aid. They’re already a TARP double dipper, but if the results of the stress test come in sub-par, then they may very well need more help raising cash.

Even if Citigroup’s core problems aren’t Pandit’s fault, and really, they’re not, it become politically untennable to keep giving one company billions and billions without anyone going to the guillotine.

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