By Vicki Needham - 04/28/10 12:13 AM EDT
Citigroup CEO Vikram Pandit has pledged support for financial regulatory
reform under consideration by Congress, according to a letter obtained
by The Hill.
Change is needed to create robust markets, investor confidence and trust in the financial system, Pandit wrote President Barack Obama shortly after his speech in New York pushing for reform.
After two trying years for Citi and other financial institutions, Pandit said he has been "a firm advocate of strong regulatory reform."
Citi received $45 billion from the Troubled Assets Relief Program and the federal government purchased 7.7 billion in company shares, one of the program's largest rescues. The Treasury Department announced Monday it intends to sell 1.5 billion of those shares for a profit.
Of that $45 billion, Citi repaid the government $20 billion after $25 billion of the company was converted into an ownership stake.
Pandit said the system needs greater transparency, derivatives should go through a clearinghouse, 'too big to fail' should end, a strong system regulator should be put into place, there should be a consumer protection agency as well as a merit-based system based on long-term performance instead of massive bonuses.
"I will continue to be an advocate for strong regulatory reform," he said.