Crisis at Citigroup, Stock Crushed, Senior Departure and Nomura to Raise Capital

Pop quiz: How much did Citi CEO Vikram Pandit make from the sale of Old Lane to Citigroup? (hint: 20% of the total deal value)

Citi's shares lost 20% on Friday, giving it a value $20.5 bn (less than a quarter of JPM Chase). The board is considering a sale of the business and the position of Vikram Pandit.

Vikram Pandit, from Nagpur in Central India, moved to the US in the 1970s to study at Columbia University where he obtained four degrees. His PhD thesis was entitled "Asset Prices in a Heterogeneous Consumer Economy".

1983 and Vikram joined Morgan Stanley following a period consulting for the bank. He gained a reputation as a "driven banker" and "prudent risk manager".

After a battle at Morgan Stanley, Mr Pandit founded Old Lane, a hedge fund that was sold to Citi in 2007 for $800m. Mr Pandit earned $165m from the deal. In early 2008, Old Lane was closed down for poor results. He took charge of Citi's hedge fund business and was promoted to head of the securities division. Following the ousting of Chuck Prince, he became CEO, backed by Citi power brokers like Robert Rubin, former US Treasury Secretary, and Sandy Weill, the former CEO.

In Asia, Citi's India CEO Sanjay Nayar, has moved to KKR after 23 years with the giant.

In addition to considering a sale of the business, Citi was also locked in talks with the Treasury (can the bank survive without a capital injection?) Chairman Sir Win Bischoff met with Federal Reserve officials and the US Treasury department. (Sir Win was previously at Schroders and moved to Citi following the acquisition of Shroders corporate advisory business).

Tokyo newspapers announced Nomura is likely to issue subordinated loans and other products to financial firms to bolster its capital base.

Emerging markets bank Standard Chartered (formed in 1969 from the merger of Standard Bank and Chartered Bank) announced a $3-4bn rights issue to boost its capital reserves. Sovereign wealth fund Temasek will underwrite part of the rights issue. Temasek is Standard Chartered's biggest shareholder.