Pandit’s Exit From Citi Questioned, Ocwen Wins Bidding War: Financial Business Update
He said, they said. The sudden exit of Vikram Pandit from Citigroup (NYSE:C) has gotten the Securities and Exchanges Commission’s curiosity up and that body will now explore the attendant circumstances surrounding the departure, according to Fox Business Network. Chairman Michael O’Neill has told analysts that Pandit resigned on his own, but other versions of the event now imply that the board demanded his resignation.
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A flow chart would be useful on this one. Shares of Nationstar Mortgage Holdings (NYSE:NSM) are tumbling Wednesday as the bidding war for the mortgage servicing assets of ResCap plays out. That company and Ocwen Financial Corporation (NYSE:OCN) wound up as the principal bidders after Berkshire Hathaway dropped out and Ocwen has apparently emerged victorious with its offer of $3 billion to Nationstar’s $2.3 billion (it had hoped to win with $2.5 billion). Meanwhile, shares of Walter Investment Management Corp. (AMEX:WAC), which might well be a partner of Ocwen in the matter, spiked then settled back in afternoon trading. Previously, a breakeven price had been assumed to be around $2.7 billion.
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