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CROOK ALERT! CitiGroup Fire Sale
Where's Huey when we need him?
CitiGroup's Sorry History
Rob Cox of the New York Times 1-15-09 provides a brief retrospective on CitiGroup's sorry history of questionable and sometimes illegal actions. Cox's article is linked below.
My own unsatisfactory personal experiences with a CitiBank "driver's edge" credit card are enough to make me believe almost anything about this bloated octopus of a financial enterprise which American taxpayers are currently being asked fund to avoid its collapse. Citi's credit card operation either invented or embraced the sleaziest "tricks and traps" for unwary credit card holders--universal default, temporary teaser rates to lure transfers of balances, inflated foreign currency transaction fees, excessive late fees and interest charges which rival or exceed the methods of the Mafia juice racket.
Cox writes "CitiGroup has shown an unrivaled ability to step into nearly every mess the financial industry has concocted over the last two decades. The 1992 merger of Sandy Weill's Travelers Group with the former Citicorp only amplified the combined group's propensity for getting it wrong."
--The Group loaded up on illiquid leveraged loans and mortgage assets that have led to net losses of $20 billion and forced the government to make two capital injections totallint $45 billion.
--Going back a few years, Citi was knee deep in tainted research scandals which resulted in the banning of Citi telecom analyst Jack Grubman from the industry. [During this period it came to light that Weill had instructed CitiGroup's charitable foundation to make a big contribution to an elite school to help Grubman get his child admitted to the school. ] Citi had its tentacles in the collapse of Enron and WorldCom and the failure of the Italian dairy company, Parmalat.
--Citi was also involved in an attempt to manipulate the European government bond market through Citi's self-described "Dr. Evil trade."
Here's a link to Rob Cox's brief article-
Buyers of CitiGroup Dismembered Parts Singed Too
- CitiGroup Fire Sale Buyers Singed
CitiGroup fire sale stoked fears that the bank is entering a perilous new phase in its financial crisis, one that will require more money from American taxpayers.
Reserve Fund Accused by Massachusetts Regulators
State regulators in Massachusetts have accused top executives of the Reserve Fund of lying to shareholders about the safety of their investments hours before the firm’s largest money fund disclosed that its share price had fallen below a dollar — and then giving big shareholders first crack at avoiding losses.
Reserve Money Market Fund Accused of Lying to Shareholders
State regulators in Massachusetts have accused top executives of the Reserve Fund of lying to shareholders about the safety of their investments hours before the firm’s largest money fund disclosed that its share price had fallen below a dollar — and