Filed under: Management, Citigroup Inc. (C)

Several sources, lead by the Wall Street Journal (subscription required), are reporting that Vikram Pandit, the head of Citigroup’s (NYSE: C) investment bank, is likely to be made the new head of the firm early next week. There have been rumors that several outsiders have turned their backs on the job. That would not be surprising. No one is certain whether there is another shoe to drop if and when Citi takes more write-offs to its huge portfolio of mortgage-backed financial instruments.

But, if not Mr. Pandit, then who? He has been at the bank and knows its structure. It might take an outsider several months to learn about all of the pieces of the big bank. Citi does not have the luxury of schooling a new chief.

Citi’s board will certainly keep in daily touch with the bank’s progress. There may be only one CEO, but he will have a number of coaches. The board cannot afford to be seen as the group that let the company fall apart on its watch.

The other reason for appointing Pandit is that the truth about a company the size of Citi is that the CEO does not run it. He may set policy, but there is no practical way for him to make all of the critical decisions. Charles Prince learned that lesson the hard way when some of his key aides made bad calls on risk management.

Mr. Pandit? Yes. The sooner, the better.

Douglas A. McIntyre is an editor at 247wallst.com.

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