Pandit addresses Responsible Finance and "Responsible Economic Growth."

Speaking at the graduation ceremony for Columbia University's School of International and Public Affairs last week, Citi CEO Vikram Pandit told students about his optimism for the American model of growth based on entrepreneurship and creativity, calling it a magic formula, although one which is no longer America's secret. As the U.S. debates public policy to control the excesses that caused the financial crisis, Pandit said care must be taken to preserve the essential drivers of economic enterprise such as the ability to both make capital work, quickly and efficiently, and connect people with opportunities.

Pandit outlined three challenges going forward. First, he called for comprehensive reform so that the financial system can better generate capital, jobs and growth that benefit everyone. Key to restoring the trust in and health of the markets are a level-playing field for all financial industry participants, the end of the phenomenon where a bank is "too big to fail", a strong federal consumer authority to protect consumer interests and real transparency into financial transactions.

Second, Pandit said America must recognize that it exists in and competes in a new economic order. Decisions made here or elsewhere now have profound, fast-moving global consequences. And while globalization presents challenges for Americans, it also offers opportunities, particularly the chance to tap into the growth of emerging markets.

Finally, Pandit said we need a new commitment to responsibility, on the individual level through disciplined saving and spending, and on the governmental level through reining in deficits, supporting investment and acting decisively on priorities. This commitment extends to private-sector institutions, like Citi, which should continually ask if their actions create economic value, serve the interests of customers and contribute to the common good. Such questions -- along with courage, leadership and resolute action -- will ultimately lead to changed behavior and a more responsible culture.

In U.S. economic history, he said, each crisis is followed by a breakthrough of new businesses, new models and new growth. The private and public sectors have a common interest in letting such a cycle work once again, but with full incorporation of the expensive lessons learned from this crisis.

A transcript of Vikram Pandit's prepared remarks on Responsible Finance is available.