before joining citigroup vikram pandit was the founding member and chairman of the old lane, a hedge fund and a private equity fund manager that was later acquired by citi. has served as president and ceo of morgan stanley's investment banking businesses. but most importantly before going into the business world vickram was an accomplished psychologicalar. -- scholar. he received undergraduate and master degrees in electrical engineering here as well as a ph.d. and mba. he has taken at this institution and served with great distinction as an actively, engaged university trustee since 2003. i apologize for those long introductions to get vickram up to the podium. but we are grateful for all the quiet ways he engages with columbia. we're proud to have him back on campus in this more visible role. please welcome me -- or join me in welcoming our friend and our alumniist and one of the most importa important, vikram pandit. [applause] >> thank you for that wonderful introduction. thank you for making me relive the last two years. and i really think the introduction is rather complete. sh

economy from citigroup ceo vikram pandit. he spoke at colombia university and was introduced by the school's president, lee bollinger. this is one hour. [applause] .. in which economics have not had more of an impact. 50 years ago modern statistical finance was created through the work of academic economists like miller, sharp and others. it's hard to imagine until the academic work of control 40 years ago no one on wall street have the ability to properly price stock-option and many of the other derivatives that have been the center of the financial crisis. moreover as fed and treasury officials intervened in the markets following the crisis meeting the terms of the t.a.r.p. for bayh pricing model stopped in the finance classis. hand-in-hand with the rise of financial economics has been the rise of finance itself. in 1947 to finance industry accounted for only 2.7% of u.s. gdp. today it has more than triple the size to 7.7%. in 1990, the was 610 hedge funds with $30 billion under management. by 2007, there were more than 7,0

from citigroup ceo vikram pandit. he spoke last wednesday at columbia university as part of their lecture series, "the world leaders forum." [applause] >> thank you for that wonderful introduction. thank you for making me relive the last two years. [laughter] and i really think the introduction was rather complete. should we go to q&a? what do you think? [laughter] anyway, it's wonderful to be here back at columbia. obviously, this community holds a very special place in my heart, and it always will. when i first came to the campus in 1973, i was 16 years old, and so i literally grew up in morningside heights. now, i've got to admit, it took me some time. i spent nearly ten years here, and i really do want to thank the university for its patience. what struck me about columbia was that you were really never far from the real world, and lee is very correct in saying that columbia is an incredible, diverse place with a large international student body, a global university, and by the way, there was never any pressure to