"Citigroup Pays for Rush to Risk" from the NY Times reports on the demise of Citigroup - the latest "wealth creator" cum wealth destroyer welfare queen to beg the taxpayers to bail their sorry tails out.
Under the negligence of CEO Charles Prince III and the incompetence of trader Thomas G. Maheras, Mr. Prince found out in 2007 how onverinvested his company was in the mortgage backed securities with stock prices down to $3.77 the company is holding out the tin cup.
"Citigroup Bailout being hatched?"
Normally, a big bank would never allow the word of just one executive to carry so much weight. Instead, it would have its risk managers aggressively look over any shoulder and guard against trading or lending excesses.
But many Citigroup insiders say the bank’s risk managers never investigated deeply enough. Because of longstanding ties that clouded their judgment, the very people charged with overseeing deal makers eager to increase short-term earnings — and executives’ multimillion-dollar bonuses — failed to rein them in, these insiders say.
While much of the damage inflicted on Citigroup and the broader economy was caused by errant, high-octane trading and lax oversight, critics say, blame also reaches into the highest levels at the bank. Earlier this year, the Federal Reserve took the bank to task for poor oversight and risk controls in a report it sent to Citigroup.
The bank’s downfall was years in the making and involved many in its hierarchy, particularly Mr. Prince and Robert E. Rubin, an influential director and senior adviser.
Did you see the latest on TV last night? Now mass transit is asking for a bailout because they had done some phony tax dodge stuff with the banks and got caught by the IRS. Now they need money because they owe the taxes they owed anyway but did not pay. They have some fucking nerve asking for help for that!
Posted by: Larry | November 23, 2008 at 05:18 AM
Why are Rubin, Greenspan and Summers in JAIL!
Posted by: Puzzled Obama supporter | November 23, 2008 at 11:12 AM
Sorry, I meant to write:
Why aren't Rubin, Greenspan and Summers in JAIL!
Posted by: Disappointed Obama Supporter | November 23, 2008 at 11:14 AM