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The Most Powerless Powerful Man on Wall Street - article

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The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 04 Mar 2009, 21:35
Interesting article. Not sure how unbiased it is, but interesting to read:

http://nymag.com/news/businessfinance/55035/
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 06:08
great read...certainly biased, but it's hard to stay neutral on an issue like this and still keep the article interesting.
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 06:10
Loooooong read, I feel its baised...nevertheless, good one.
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 06:59
Interesting article... thanks for bringing it up. Wondering why City paid so much money for his company which was underperforming
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 07:11
spiridon wrote:
Interesting article... thanks for bringing it up. Wondering why City paid so much money for his company which was underperforming


A company buys back shares for following reasons:

1) The buyback announcement, its terms, and the way it is implemented all convey signals about the company's prospects and plans. One example, when a company buys back shares of its own, it is signaling confidence in their future performance to the investors.

2) If financed by a debt issue, buybacks can significantly change a company's capital structure, increasing its reliance on debt and decreasing its reliance on equity.

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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 07:33
nink wrote:
spiridon wrote:
Interesting article... thanks for bringing it up. Wondering why City paid so much money for his company which was underperforming


A company buys back shares for following reasons:

1) The buyback announcement, its terms, and the way it is implemented all convey signals about the company's prospects and plans. One example, when a company buys back shares of its own, it is signaling confidence in their future performance to the investors.

2) If financed by a debt issue, buybacks can significantly change a company's capital structure, increasing its reliance on debt and decreasing its reliance on equity.


What are you talking about? They (city) bought Pandits private hedge fund thru acquisition in order to bring him to the company according to the author. Who mentioned back buying shares
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 07:40
spiridon wrote:
What are you talking about? They (city) bought Pandits private hedge fund thru acquisition in order to bring him to the company according to the author. Who mentioned back buying shares


:-D
Oh, that's what you are talking about.

Well, Pandit used to run Morgan Stanley investment bank division before Purcell took power and he overcame similar situation in turning around a business.

Since Citi's executive talent pool was thin compared to its peers, I guess the only way they can recruit a talent like Pandit was to buy his entire hedge fund and absorb into Citi.

Before his Citi gig, Pandit was widely viewed as a star on Wall St, with specialization in risk management.
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 08:06
nink wrote:
Since Citi's executive talent pool was thin compared to its peers, I guess the only way they can recruit a talent like Pandit was to buy his entire hedge fund and absorb into Citi.

Before his Citi gig, Pandit was widely viewed as a star on Wall St, with specialization in risk management.


Thats the point, according to the author, Pandit was never a risk taker, he rather offered to sell out services rather then to actually invest etc. Also, he couldnt manage to run his own fund so I dont get why someone would hire this guy to the executive position? I would bring him on to do some heavy calculations and to deliver information on investment-risk ratios but not have him to actually run a company! And to pay him all that money just to bring him on!!! that doesnt sound as a good idea if all the information presented in the text is close to what really happened there.
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 08:23
spiridon wrote:
I would bring him on to do some heavy calculations and to deliver information on investment-risk ratios but not have him to actually run a company! And to pay him all that money just to bring him on!!! that doesnt sound as a good idea if all the information presented in the text is close to what really happened there.


Pandit wanted to run Morgan Stanley after Purcell was pushed out. He was willing to come back ONLY if he gets to run the show. Instead, MS went with J Mack.

I don't think Citi could have hired Pandit at the time without a promise that Pandit will succeed Prince sooner or later.
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Re: The Most Powerless Powerful Man on Wall Street - article [#permalink] New post 05 Mar 2009, 09:38
Timely article post isa...Citi shares fell below $1 today:

http://money.cnn.com/2009/03/05/news/co ... 2009030511
Re: The Most Powerless Powerful Man on Wall Street - article   [#permalink] 05 Mar 2009, 09:38
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