Double Dip Recession- No Says Citigroup Pandit

Citigroup Inc. Chief Executive Officer Vikram Pandit, who runs the third-biggest U.S. bank, said the economy may rebound without “slipping backward” into another recession.

“There are still some of us who believe there could be a double-dip,” Pandit said today in a speech at a New York conference to discuss the economic impact of new financial regulations. “I think we are likely to avoid slipping backward.”

Citigroup reported a $4.4 billion quarterly profit last week, its first since 2007, as the economic rebound curbed consumer loan losses and bolstered trading profit. The New York- based bank had to get a $45 billion bailout in late 2008 after plunging home prices and borrower defaults led to record losses.

The bank repaid $20 billion of its bailout in December. The rest was converted into a 27 percent U.S. stake, which the government plans to start selling, according to a registration statement filed today.

Pandit, 53, said economic growth may come from “continued support and funding of education and research” and policies making it easier for companies to tap foreign markets.

“The rise of diversified and strong consumer bases around the world will have multinationals and global institutions think about how to capitalize on these new consumer bases,” Pandit said. This will benefit Citigroup, which has operations in more than 100 countries, he said.

New energy policies and investments in infrastructure such as the energy grid are the third and fourth pillars for restoring economic growth, Pandit said. No. 5 was restoring “confidence in financial markets,” he said.

--From Business Week Editors: Rick Green, Gregory Mott

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