Citigroup (I earlier mentioned how the Sovereign Wealth Fund of Abu Dhabi are bailing them out) lost another 46 cents on their share price as Robert Druskin the Chief Operations Officer resigned yesterday. The news comes as Vikram Pandit is announced as the new CEO.
Druskin was a close friend of Charles Prince (ex CEO of the group) who was tossed out earlier in the year
because of the groups disastrous exposure to the sub-prime loan market.
I sincerely hope he’s not leaving with a golden handshake, I’m a firm believer that Exec’s who expose their shareholders should be treated the same way as a regular staff member who steals from the company. Making any decision that affects share price is what they get paid – damn well – to do, and failure to do it well should result in an equally dishonourable discharge.
The Americans are being disappointingly generous in the way disgraced exec’s are being treated: Enron and a few others being the exception. The market and the people need heads to roll, it’s the only way to ensure that people don’t make decisions which destroy millions of peoples lives financially, if there are no heads rolling there is no deterrent.
today’s prediction: The shares of Irish Life and PTsb will perform well for the first half of next year and then go into a downward trend, this is on the back of their decision to isolate the broker market which accounts for about 60% of their mortgage book and my gut feeling is that Irish Life being part of the same group will also face repercussions because of their reprobate cousin and overall the share price will be damaged. Dennis Casey is the head man at PTsb.