SEC Should Investigate Pandit's Surprise Exit: Pitt
By: Former SEC chief Harvey Pitt told CNBC Wednesday that the commission should investigate the surprise departure of CEO Vikram Pandit from Citigroup, since there were no hints given on the bank's earnings call the day before.
"When Citigroup went out with its results (Monday), they either knew or should have known what was coming next, unless this was purely a surprise move by Mr. Pandit, and it doesn't appear it was, " he told CNBC's "Squawk on the Street."
Pitt noted that although Citigroup has claimed Pandit's departure was voluntary, "it appears that that is inaccurate."
"If that is in fact not correct, it would appear to create violations of the federal securities laws, " Pitt said.
He added that while there may be little recourse for the individual investor caught off guard by the corner office change, especially with the stock rising on the news, "from the SEC's perspective, it does not want public companies playing fast and loose with the disclosure requirements of the law."
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