Charlie Rose interviewed Citigroup CEO Vikram Pandit on his PBS program last night. It was Pandit's first extended TV interview, and one he clearly prepped for with the help of Citi's communications department, given his insistence on starting off every response with Charlie's name. Unfortunately, Pandit seems to have also been advised not to answer any questions and stick to canned statements instead, so poor Charlie (and the viewing audience) didn't get to find out what exactly transpired behind the scenes last weekend when Citi was rescued by Washington, or what Pandit thought of the Times' crushing account of the bank's failures last Sunday. (This also explains why Charlie looks so grumpy for most of the interview.) Points to Vikram for sitting through 54 minutes without saying anything substantial. And he did wear a nice blue suit and red tie, if that's any consolation. Video of the non-interview after the jump.

Why was real estate developer and Daily News owner Mort Zuckerman so quick to come to Citigroup's defense with no less than four separate appearances on MSNBC yesterday? Perhaps it has something to do with the fact that the bank is one of his largest tenants? Wayne Barrett explains. [VV]

♦ Don't expect another winning day on Wall Street: Stock futures pointed lower following grim news about unemployment and consumer spending. [WSJ]
♦ Consumer spending fell 1 percent in October, the steppest decline in seven years. And the four-week average of new jobless claims hasn't been this high since January 1983. [CNN, WSJ]
♦ Good news: Shares of Citigroup appear to have stabilized. Bad news: Not everyone is convinced the rescue plan will be enough to keep Citigroup solvent. And it's never a good sign of things to come when your head of human resources suddenly jumps ship. [WSJ]

Citigroup is a pathetic loser of a corporation having needed three bailouts in as many decades. "Another large exposure for uncertain benefits," the corporate apologists at the Wall Street Journal editorial page declared of the latest Citi rescue. But the global banking giant is one of the largest tenants of Mort Zuckerman, the owner of Citigroup's world headquarters and of the nearby 59-story Citigroup Center, which Citi partly occupies. Why is NBC News allowing Zuckerman to pimp a rescue for Citi?

♦ News of the government's rescue package for Citigroup provided the market with boost yesterday, but Citi CEO Vikram Pandit (who still has his job for the time being) has many long days and nights ahead if he's going to turn the bank around. "This is a reprieve, but it's not a complete pardon." [WSJ]
♦ On CNBC, Prince Alwaleed bin Talal, one of the bank's biggest shareholders, expressed confidence in "Mr. Vikram" while "stroking a strand of beads and wearing red-tinted glasses." Then he blamed the bank's problems on Chuck Prince. [NYP]
♦ Tim Geithner may be the man of the hour, but shouldn't he be shouldering some of the blame for the government's missteps thus far? [NYT]
♦ Banks are concerned they may have a credibility problem on their hands. You think? [Reuters]

You know the economy is in bad shape when a fake Bloomberg News story with the headline "Somali Pirates in Discussions to Acquire Citigroup" starts making the rounds: "The pirates would buy Citigroup with new debt and their existing cash stockpiles, earned most recently from hijacking numerous ships, including a $200 million Saudi Arabian oil tanker." [Bankers Ball]

Hey, the government has agreed to bail out Citigroup. Surely we'll now be saved from worldwide insolvency! Right? Or is this a profligate waste of money? We have to level with you: this whole bailout thing has now exceeded the media's ability to critically analyze it. You've heard everyone throw around figures like $750 billion for the earlier bailout costs. This Citigroup thing includes a guarantee of $306 billion in assets. But think about this: according to Bloomberg, the US government has now pledged more than $7.4 trillion to rescue the financial system in the past 15 months. How much is 7.4 trillion?

♦ Following a weekend of non-stop negotiations, a deal is now in place to stabilize Citigroup: The bank will get a $20 billion cash injection from the Treasury Department and the government will guarantee $306 billion worth of toxic assets. [Bloomberg, NYT, WSJ]
♦ The next group in line for a bailout? Home builders, who are now lobbying Congress for a $250 billion stimulus package. [WSJ]
♦ The U.S. economy may need $300 billion and $600 billion more to survive the crisis, says George Soros. [DB]

The situation at Citigroup turns bleaker by the minute. Shares have fallen below $4, the bank's CEO, Vikram Pandit, is busy reassuring employees that the bank will not be broken into pieces, and there have even been rumors that Pandit himself may be forced out. One sign that doesn't bode well for Pandit: The financial press has stopped spelling his name correctly. [Bloomberg, Dealbreaker]

♦ With shares down 26 percent yesterday, Citigroup is now weighing all of its options, including possible selling the firm. The board meets today to discuss the " range of scenarios that were unthinkable only weeks ago." [WSJ]
♦ The market bounced back in early trading after historic sell-offs in recent days. [MW]
♦ Hedge funds contracted by 9 percent in October, the lowest level in two years. [Bloomberg]
♦ A bailout of the auto industry won't be taking place just yet. Talks between Detroit and Washington collapsed with lawmakers saying the industry lacked credible plans to return to profitability. [WSJ]
♦ The city's securities industry shed about 16,000 employees in October. [DB]

How bad is the situation at Citigroup today? Really, really bad. Citi executives are now frantically lobbying Washington to crack down on short-sellers, something that both Bear Stearns and Lehman Brothers tried to do. (And you know how that turned out.) Meanwhile, Dealbreaker reports that the bank has removed the company's ticker symbol from the screens in the lobby, lest employees start to panic at the sight of Citi shares hovering below $4.

The chief executives of the big three American auto manufacturers were blasted by lawmakers in Washington yesterday for having the audacity to turn up on Capitol Hill with their tin cups in hand after having just stepped off their lavish corporate jets. The episode turned into a PR disaster for GM, Ford, and Chrysler—and damaged their chances of scoring a deal and landing billions in taxpayer dollars—but at least they were using the jets on company business. Even more eyebrow-raising is how often these palaces in the sky are used to ferry top execs on vacation, or to hang out at events like the Olympics. Of course, there's no way to be sure that GE execs weren't just negotiating a new microwave manufacturing contract when the company's Gulfstream touched down in Puerto Rico on the eve of a holiday weekend. But if you click here, you can see how two of the companies now collecting billions in taxpayer dollars have been making use of their jets over the last few months.

♦ The effort by U.S. automakers to secure a bailout hit a major roadblock after execs from the Big Three were sent home by Congress empty-handed. The behind-the-scenes negotiations continue. [WSJ, Bloomberg]
♦ Shares of JPMorgan Chase, Citigroup and Bank of America are at multi-year lows as the Dow hovers at a six-year low of its own. [DB, DB]
♦ GMAC, controlled by Steve Feinberg's Cerberus Capital, says it's applied to become a bank holding company so it will be eligible for bailout cash. [DB]
♦ GE has turned to China and Singapore as it looks to raise cash. [Bloomberg]
♦ Harbinger's Phil Falcone is pulling back on his media investments. He's reduced his exposure to the New York Times and Media General, just months after fighting for board representation. [WSJ]
♦ Deutsche Bank plans to cut 900 more jobs. [NYP]
♦ Weekly jobless claims have reached a 16-year high. [MW]

Yesterday we sent a big batch of coupons to Goldman Sachs chief Lloyd Blankfein, just in case he was thinking of cutting back on his spending now that he won't be receiving a $60 million bonus at the end of the year. Today we're bestowing charity on the most beleaguered CEO on Wall Street this week, Vikram Pandit. The Citigroup chief announced plans to dismiss 50,000 people earlier this week, and Citi shares tumbled to a historic low today as the bank teeters on the edge of the abyss. Sounds like someone needs a little cheering up!

♦ The U.S. consumer price index fell 1.0 percent in October compared to the previous month, the biggest drop in 61 years. [WSJ]
♦ Citigroup is liquidating another one of its hedge funds after it plunged 53 percent last month. Also: Citi's stock dropped to its lowest level in 13 years yesterday. [FT, NYP]
♦ Just because he spends his days taking aim at Wall Streeters doesn't mean Andrew Cuomo left any bigwig financiers off the guest list for his birthday party/fundraiser on Dec. 2. [NYP]
♦ The CEOs of GM, Ford and Chrysler who pleaded poverty in front of Congress yesterday flew their private jets to get there. [ABC News]
♦ Most hedge funds are pulling back right now, but hedge fund king John Paulson actually celebrated on Monday night with a lavish dinner for more than 100 at the Metropolitan Club. [DB]

The economy is worse off than we thought: It seems some Wall Streeters have been turned to drug dealing. A sting operation on Craigslist uncovered a rather unlikely culprit: "A Citigroup vice president, Mark Rayner, attracted police attention after posting an ad offering Ecstasy, ketamine, cocaine and crystal meth. An undercover cop arrested him after he tried to sell 50 Ecstasy pills and 7 grams of cocaine." But at least Rayner has a new career lined up—unlike the vast majority of the 50,000 Citi employees who were laid off yesterday. [NYDN]

♦ Goldman Sachs' seven most senior execs have decided to forgo their 2008 bonuses. The move was simply "the right thing to do," said a Goldman spokesman. [WSJ, NYT]
♦ JP Morgan may cut up to 3,000 people, or 10 percent of its global workforce, in the coming months. [Telegraph]
♦ Citigroup's CEO, Vikram Pandit, says the bank plans to eliminate another 50,000 jobs, and cut expenses by as much as 20 percent. [Bloomberg]
♦ UBS reportedly plans to lay off 30 percent of its investment banking division. [Dealbreaker]
♦ Japan has announced that it is officially in a recession. [Bloomberg]
♦ As for the U.S., 96 percent of the economists surveyed in a recent poll believe the economy is in a recession, and nearly three-fourths think it could persist beyond the first quarter of next year. [CNNMoney]

It's a grim day for employees of Citigroup as they hear more about the beleaguered bank's plans to cut costs and slash another 10,000 jobs. But Citi director Dick Parsons doesn't want to see anyone to give up hope. He issued a memo to company employees earlier this morning and urged them to "keep the faith." The memo's below.

♦ Things may be about to get worse at Citigroup: The Times reports that the bank may be forced to lay off another 25 percent of its workforce as it deals with continued losses, a plunging stock price, and a lack of investor confidence. [NYT]
♦ In a show of faith, Citi CEO Vikram Pandit and three deputies bought a total of 1.3 million shares yesterday after the stock fell below $9 for the first time in 12 years. [Bloomberg]
♦ Is the $700 billion bailout working? Not so much: More than a month and nearly $300 billion into it, "many of the nation's financial arteries seem nearly as sclerotic as they were before. Some of them, in fact, appear to be hardening more." [NYT]

♦ Dick Parsons is the frontrunner to replace Sir Win Bischoff as chairman of Citigroup. [Reuters]
♦ Steve Rattner is shutting down the Quadrangle Group's hedge fund amid weak performance and investor redemptions. [WSJ]
♦ Phil Falcone, Ken Griffin, John Paulson, Jim Simons and George Soros will appear in front of a House panel today. [DB]
♦ Hank Paulson is taking a beating following the news that the Treasury will now focus on struggling consumers, instead of financial institutions. Paulson has become "a reduced figure, damaged by the financial-market meltdown that happened on his watch and by the government's struggles to respond to it." [WSJ, DB, Bloomberg]