mr. pandit did fine.ause when he sold his hedge fund to citi, me a lot of money. >> that was an $800 million purchase of the menlg fund. he got about $166 million pretax that year. the following year, he got almost $40 million which was a heck of a lot for the year 2008. and since then he had a couple of lean years. but he's made out okay. >> his 401(k) is better than mine, believe me. if citi is too hot to handle, how should i look at the big banks? >> i leicht the story on the big banks. if the market does well, big banks could do very well. the thing with citi bank specifically, it's not a superstar otherwise it wouldn't be up. i think bank of america is a little better pick. but i like the banking sector. >> all right, jim, thank you very much. let's move to a market fwlash. >> there are reports circulating that the om group is in the market to sell including a refinery in finland. we're seeing a run up in shares. we'll continue to track the story. >>> on the watch list this hour, julia bourewel boaru

mr. pandit and mr. tone a lot of things that made it unclear that the business had been good. i think that this quarter was the beginning of the turn around. >> well, it may or may not be. i don't know. there's a lot of -- there's a lot of analysts are saying something very different. i'm not a bank analyst. citi probably more than any of the other mega banks or exposed to the fwlobl economic environment and there's a lot of uncertainties. one thing you do need if you're fwing fwlobl bank with far flunk r operations in different countries, you need good information management systems. you need good risk management. you need sophisticated management. you need a rational legal structure to help you stay on top. need for that is even more acute now that we have a very uncertain global economic environment. i'm not an analyst. you like citi. i think they are fine. there's a lot of analysts who are saying different things. at the end of the day the board needs to make this decision and the board made a decis

mr. pandit came out and said this was my own decision. simon and i were talking about this the day it came out. it was nonsensical. now we find out. i agree with harvey pitt. he said given a choice between lying or simply not saying anything, i think mr. pandit should simply say nothing about this. >> i don't know if there's a way to make this a great story from their perspective. but, hey, i don't think that's the way anybody would want to go. it doesn't look good, as bob just said from pandit's perspective. but i think there are a lot of questions about whether they could have communicated better about what was really behind this. like the truth. >> guys, let's finish up with apple. it was supposed to be the big one in corporate earnings this week, reporting of course ultimately weaker than expected ipad sales. the white ipad minis are already selling out. why has the stock been so resilient over the last 24 hours? >> i don't think it is clear that this is a sign of a slowdown with apple. we know they're spending a bunch of money, upset

mr. pandit soon after his resignation and said it was my decision and it was time and after five years iplished what i set out to do. after other signs of a technology slowdown and continued down on friday. intel beat expectations and offered beat guidance, ibm met expectations but missed on revenue and microsoft missed expectations. citi and goldman and morgan stanley came in ahead and bank of america did as well though its revenues fell short. it's an busy and important time for your portfolio and the economy for sure. here's ken rogoff, professor of economics at harvard. wonderful to have you back on the program, welcome. >> thank you, maria. >> tell us broadly what impact you think either candidate would have on the economy and you're not affiliated or advising either campaign, yes? >> i'm not. i mean, if they got their vision put in place, then i think they very different. my best guess is that congress will resist whichever candidate becomes president and will sort of continue to muddle along. but, i think broadly president obama puts much more emphasis on reducing unequality and g

mr. pandit took over as ceo going back to roughly 2007. the shares have lost roughly 89% under his watch. there is real criticism under the way he watched the show over there, this coming from mike mayo, says the transition everyone on shock or at least surprise, shock a bit of high per fwo lee. this reflect as microcosm of the poor, poor corporate governance under vikram pandit. keep in mind he had the unpleasant joy of having to steer citi through multibillion dollar bailouts as well as the financial crisis. sheila bair who was at the front seat of the bailouts from the fdic issued this statement to fox business early this morning saying quote, the most important job of a corporate board is to hire the chief executive officer. the citi board should be commended for the decision they announced today. this is a new chapter for citi and i wish them well. sheila bair will be on with liz claman at 3:00 p.m. you do not want to miss that interview. also under vikram pandit let's look how you and i saved citi, the u.s. taxpayer. look at this, $4

mr. pandit, and the board, i'd like to hear from mr.l and the new ceo where they see taking citigroup. my doubt is that they really will get there. we'll see what they have to say. >> kate, they're really going to have some answering to do. just a day ago we get the news that the earnings were better than expected. vikram pandit spends an hour and 40 minutes with the community going through the strategy. a day later we find out he's stepping down abruptly. >> absolutely, maria. i think he did shed some light on the situation in his conversation with you, but there remain a lot of questions unanswered. a few things come to my attention in terms of the board maybe wanting to see him leave. the dividend they weren't able to pay out, the ongoing pay flap, which is not pandit's problem. i mean, i guess it is his problem. wasn't necessarily his decision making process. obviously, he was the poster boy for it. also, recently the sheila bair book that came out. everyone knows she's been quite critical on pandit. i've been told there's some cons

mr. pandit say? >> not all that much but expressing concern over the u.s. fiscal cliff. similarly the cfo responded to claims of a house recovery saying that the economy must lead housing, not housing leading the economy. while the macro environment for banks remains weak, investors are looking at each bank on a case by case basis and they're actually saying that citi's case is improving. excluding items, citi's earnings per share beat analyst estimates by 10 cents matching 11% deposit growth and slower loan growth but big gains in securities and banking. citi one of the only banks so far to show net interest margins improving instead of deteriorating amid that lower interest rate environment. cfo saying the nim should stay at these levels for q4 as well. if earnings stay this good, citi executives said on the call that the bank should reach a 9.5% basel 3 tier 1 capital level by next year. while citi hasn't made as much on the mortgage boom as jpmorgan and wells fargo, pandit observing continued growth in latin america, namely mexico. asia though slowing remains active.

mr. pandit which is another story.ut if the stock was down 10% that day, which could have happened, then they'd have a real problem on their hands. they reported earnings the day before this supposedly -- he decidedly within 12 hours decided to leave. we called sort of nonsense on it the next day on "fast money." clearly this was something in the works for months. they should have announced it the day they reported earnings. they had a fiduciary responsibility to do so. >>> in the next hour, everybody is talking about the threat of the fiscal cliff to the economy, but there may be an even bigger threat to the recovery that is being summarily ignored. >>> but first, our final trades coming up next. at shell, we believe the world needs a broader mix of energies. that's why we're supplying natural gas to generate cleaner electricity... that has around 50% fewer co2 emissions than coal. and it's also why, with our partner in brazil, shell is producing ethanol - a biofuel made from renewable sugarcane. >>a minute, mom! let'

pandit had a really tough job. so looking at citigroup stock price decline during his tenure, he was brought in as mr. cleanup. ot fire to ascribe the decline to him. but investors didn't regard pandit super favorably. he wasn't regarded as a jamie dimon type. people had questions about his strategy, his charisma, and the number of missteps that happened under his watch. and of course the compensation issue. i don't think there is anger or fear in the investor class. there's just a sense of come on, citigroup, couldn't you handle this a little bit better? >> if there's talk of that shrinking or divesting assets, now having a firmer group at citi, what that would imply for valuation. >> well, that gets into this whole interesting question, this renewed speculation and push about breaking up the big banks, and you obviously had a couple of people who were instrumental in assembling the big banks, to sandy wile come out this summer saying we've got to break these things up. and this isn't so much a sense of right or wrong or are taxpayers still on the hook, it's really a question of where shareholders' interest is

mr. pandit, and it doesn't appear it was. itself and the company said this was a voluntary decision. it appears that that is inaccurate, and that is a very troublesome affirmative statement. it confuses the marketplace, and that's what the securities laws are designed to prevent. >> if you were chairman of the s.e.c. now, would you order an investigation? >> i've lost the connection. >> can you hear me, mr. chairman? i think we've lost chairman pitt there. we will attempt to regain that audio connection in just a few moments time. let's take a break. copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners. [ male announcer ] fede

mr. pandit spoke to maria bartiromo and she reported on his comments. is not how it goes and given the way it went and what i believe and many other people believe, certainly a lot of his key executives who i was able to speak to yesterday believe he wanted to stay at that bank. and so, come on, you know, what really happened? well, yeah, all right, we disagree with the way you're doing things. why do you disagree? well, we disagree because of this. you have to change this. forget it. was he fired or is he leaving? >> i think we're going to have to leave it at the he said she said. >> faber, i thought you said pushed out before anyone yesterday. >> i did. >> that's why i don't understand. i thought you said that first. >> i did. >> but you didn't really know, though, did you? or did you? >> well, i had a very good sense. >> okay. because i thought you said it first. i was here. all right. >> that funny has a good nose. >> of course you do. come on. >> wall street. yeah, i do. >> dennis thiebs originally. >> wasn't it based on the movie? >> no. i think i

mr. wild on picking an excellent candidate because he didn't do that. both chuck prince and bicram pandit are holders. he has experience restructuring the bank, and i think it is a really positive development. >> on that conference call that we just reported by the citi's chairman, michael o'neill, who said there is no other shoe to drop. michael corbett said he is going to follow on the foundation that was set by bikram pandit. is it going to be business as usual or are they going to do things differently? >> they autos hav almost have to things differently because they sold smith barney ne, and they sold the insurance business. what they have left is the core bank, and citi holdings, which are the assets they want to get rid of. that includes consumer and capital lending, and the commercial market, which is much smaller than it used to be, and there are other components in the mix. my hope is this new c.e.o. and its team focus on what they have, avoid a lot of the noise going forward, and maybe coax investors back into the stock. because it has been a very difficult story. >> what about

mr. corbat to continue what i have been doing, focus on emerging markets and core banking. pandit is well versed on risk. that's different from core commercial banking. so there is a bit of odds at these two guys o'neal versus pandit. one of my sources said they were like oil and water. more on that in a minute. number four, i said to him was this really about compensation at the end of the day. they didn't want to pay you. quote, 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 about time after five years of accomplishing what i think we set out to do, we have done it. i said to him, are there any blowups that we need to know about, are we going to learn that there is a major scandal about libor, are we going to learn that the derivatives portfolio is out of whack, that the valuation keeps dropping. he said all of that would be disclosable, that i would have to disclose that. i would never walk away from this position if i felt this firm was not in very good shape. i feel good about leaving this where i am. the firm

jim, i saw what you tweeted about pandit leaving after a terrific quarter which is worrisome. how should we read this? >> i'm listening to mrgood, you know, pandit finally got it right. this was an absolutely terrific quarter, there was so much that was good here, international was absolutely terrific, you had very good net interest margin. you know, i got to be really blunt about this. i don't know what the heck is going on here. havens i've known since when i did a ton of business with morgan stanley, he's a stateup guy, havens is totally standup. i have no idea what's going on and this is major and something is very wrong. >> you're right, jim, apparently a lot of, we're hearing top citi executives, no names here but they're totally taken aback by the announcement. >> it's shocking. i like to speak to the management team after the quarter but it was so terrific i was looking forward to speaking with them sitting down as i do every quarter to say listen, everything's finally coming together, you really nailed it. >> nowhere does it say, it doesn't say intervictim anywhere. it's weird to get a guy, the two leave and you im

mr. o'neill that day right after the market closed at about the 4:02, after the coerence call for third quarter earnings went to vikram pandit and i'm paraphrasing but along these lines, lost confidence inou. question, why didn't they announce it during the conference call? by the way if they loved confidence and prodded him to submit his resignation, why are they telling wall street that it was all vikram pandit'sdea to leave? that is sothing is the sec is concerned about, giving those types of statements to the market what we unrstand thanks to cheryl's good reporting this is informal probe into the factand circumstances surrounding his departur back to you. melissa: good stuff, charlie. i know you will stay on top of it. thanks so much. >>> cafornians getting crushed at the gas pump. can enviroental regulations be scaled back to give some badly-needed relief? former governor gray davis is here next in a fox business, exclusive. m.o. "money" coming up. ♪ ♪ . melissa: turningo energy now, california is known to be eco-friendly but the state's environmental regulationcould be what is driving gas prices so high. with an avera