When: Today, Tuesday, October 16, 2011
Where: CNBC's "FAST MONEY HALFTIME REPORT "
Following is the unofficial transcript of a CNBC breaking news interview with Maria Bartiromo and departed Citi CEO Vikram Pandit today on CNBC.
Following is the link to video on CNBC.com: http://video.cnbc.com/gallery/?video=3000122994&play=1
All references must be sourced to CNBC.
MICHELLE CARUSO-CABRERA : MARIA BARTIROMO HAS JUST INTERVIEWED VIKRAM PANDIT SHE JOINS US NOW ON THE PHONE MARIA
MARIA BARTIROMO : THANK YOU VERY MUCH MICHELLE. I WANT TO GO THROUGH THE POINTS THAT VIKRAM JUST LAID OUT FOR ME AND THEN I WANT TO TELL YOU REALLY MY ANALYSIS OF IT. FIRST OF ALL, VIKRAM PANDIT IS SAYING THIS WAS HIS DECISION. HE SAID IT WAS TIME AFTER FIVE YEARS OF ACCOMPLISHING WHAT HE SET OUT TO DO AFTER THE EARNINGS, IT IS CLEAR THIS COMPANY IS EXECUTING. NUMBER TWO, HOW WAS THIS DONE. HE SAID AFTER THE EARNINGS WERE RECEIVED WELL AND AFTER THEY DID THE CONFERENCE CALL WITH ANALYSTS AND IT WAS CLEAR THAT THE COMPANY HAS BEEN EXECUTING WELL, VIKRAM SAID HE CALLED MIKE O'NEILL THE CHAIRMAN OF THE BOARD TO DISCUSS STEPPING DOWN. HE SAID HE'S BEEN THINKING ABOUT THIS FOR SOME TIME AND THE BOARD WAS ALWAYS READY FOR THIS EVENTUALITY. AND HE CAME TO THE DECISION ALONG WITH MIKE O'NEILL THAT NOW WAS THE TIME. I SAID TO HIM WHY SO ABRUPT IF NOW IS THE TIME, WHY NOT STAY ON THROUGH YEAR END, WHY NOT STAY ON THE BOARD. WHY NOT DO THIS IN A MORE ELEGANT WAY. HE SAID THIS SITUATION AND THE WAY WE HAVE ANNOUNCED IT SHOWS THAT WE IN FACT ARE ORGANIZED. THAT THE BOARD HAS BEEN READY FOR THIS EVENTUALITY WE HAVE A NEW CEO IN PLACE AND THERE IS NO REASON TO HAVE THE OLD CEO LOOKING OVER HIS SHOULDER AND CRITIQUING WHAT HES DOING. HE SAID HE EXPECTS THE NEW CEO TO CONTINUE WHAT HE HAS BEEN DOING AND THAT IS FOCUS ON THE EMERGING MARKETS, FOCUS ON THE POPULATION GROWTH OUTSIDE OF THE UNITED STATES, FOCUS ON GETTING BACK TO THE CORE BANKING. NOW A FOOTNOTE HERE REMEMBER O'NEILL THE CHAIRMAN OF THE BOARD COMES FROM COMMERCIAL BANKING. VIKRAM REALLY IS A MASTER AT RISK AND UNDERSTANDS RISK BETTER THAN MOST SO THIS IS A BIT OF A NUANCE HERE THAT I JUST WANT TO POINT OUT THAT IT FEELS LIKE THIS IS A RETURN AND SORT OF A MORE AGGRESSIVE MOVE TOWARDS COMMERCIAL BANKING AND AWAY FROM THE RISKIER BUSINESSES. NUMBER FOUR, I SAID, VIKRAM, ISN'T THIS REALLY AT THE END OF THE DAY ABOUT COMPENSATION. IT WASN'T THAT THEY JUST SIMPLY DID NOT WANT TO PAY YOU. QUOTE FROM HIM, HE SAID, MARIA, LET'S NOT FORGET I WAS THE ONE WHO WORKED FOR A DOLLAR WHEN I NEEDED TO. I STEPPED UP. NO, IT WAS JUST TIME. AND AGAIN, HE REPEATED AFTER FIVE YEARS OF ACCOMPLISHING WHAT WE SOUGHT OUT TO DO, WE FELT NOW WAS THE RIGHT TIME TO DO IT AND I'M HAPPY TO HAVE THE TIME TO THINK ABOUT WHAT I'M GOING TO DO NEXT. MY NEXT QUESTION WAS, WELL, WHAT IS ON THE HORIZON THAT WE NEED TO KNOW ABOUT. ARE THERE BLOW UPS DOWN THE ROAD THAT ARE COMING. WHAT ABOUT LIBOR. ARE YOU INVOLVED IN THE LIBOR. WHERE ARE THE LAWSUITS THERE WHAT ABOUT THE DERIVATIVES THE VALUE OF THE DERIVATIVES ARE WE LOOKING AT A REAL MISMATCH IN TERMS OF WHAT THE VALUATIONS ARE BECAUSE REMEMBER WITH BASEL III WE SAW THIS IN THE JPMORGAN QUARTER WITH BASEL III NOW THE BANKS ARE REQUIRED TO HAVE ALL THE DERIVATIVES IN ONE PLACE ON ONE BALANCE SHEET, SO I WONDERED IF IN FACT THAT IS INDICATING THAT THERE IS A HIGHER LEVEL OF DERIVATIVES AND THE VALUATION IS EXCESSIVE AND PERHAPS THAT'S AN ISSUE. HE SAID MARIA I WOULD NOT BE LEAVING IF I DID NOT FEEL THAT THIS COMPANY WAS IN VERY GOOD SHAPE. SO HE SUGGESTED THERE ARE NO BLOWUPS ON THE HORIZON. SO THIS IS WHERE VIKRAM PANDIT JUST TOLD ME STRAIGHT AWAY THAT IT WAS HIS DECISION THAT IT WAS TIME TO GO. THE COMPANY IS EXECUTING WELL. THAT ITS NOT ABOUT COMPENSATION AND ITS NOT ABOUT ANY BLOWUPS.
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