Citigroup (C) CEO Pandit Answers to Congressional Oversight Panel

Citigroup Inc. (NYSE: C) CEO Vikram Pandit told the Congressional Oversight Panel, which oversees the funds from government bailouts, that the bank is "fundamentally different" than the beleaguered firm that took $45 billion in taxpayer dollars.

Pandit said that the experience gained by Citi during the financial crisis proved that there is an obvious need for clearer guidelines to handle with large, failing banking institutions, which has been a key topic for President Barack Obama's administration.

At the meeting, Mr. Pandit also said short-sellers were partially to blame for the bank's near-collapse in the fall of 2008. Pandit said before the second chuck of bail-out funds the bank was fundamentally sound, but short-seller ignited fear in the market.

"I am pleased to say we are in a far different and much healthier position," Pandit told bailout overseers on Thursday.

Assistant Treasury Secretary Herbert Allison stated that funds invested in Citi and other financial firms were necessary to stop the erosion of a financial system on the verge of collapse. He added that the taxpayers will likely see a return on investment for the entire set of rescues for Citi, which has received a total of $45 billion during the recent financial crisis.

Allison also described the Treasury as a "passive investor" that is not as involved as much with the operations of Citi as it should be.

Panel chairman Elizabeth Warren replied with a question of, "Are you saying that no one in the Treasury monitors the financial condition of Citi, and no one in Treasury is paying attention to the systematic risk that Citi poses?"

Allison answered saying that the Treasury does look at information that is readily available to the public, but iterated that the government needs to become involved deeper.

In an interview after the testimony with Fox Business News, Pandit said that the key to preventing another economic crisis is "the creation of a systematic risk regulator with resolution authority is a critical step for the country to take."

Citi is one of a group of banks that received extraordinary assistance from the Troubled Asset Relief Program, and has since received public backlash from taking the taxpayer dollars.

When asked about how the firm is handling the public scrutiny, Pandit said, "We have been very active in working with them through their times of need but we also make sure we keep money flowing."

Shares of Citi are up 3 cents in aftermarket movement on Thursday to $3.43.

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