$hitibank: We had no clue our recklessness would nearly crash the financial system

[marmar]

from Independent UK:



Citigroup bosses under fire for role in credit meltdown
US inquiry says bank's senior members 'lost their grip' during financial crisis

By Stephen Foley in New York
Friday, 9 April 2010


Citigroup's board was blindsided by the collapsing mortgage market and unaware it was sitting on tens of billions of dollars of mortgage derivatives in the run-up to the financial crisis, its former bosses told a commission of inquiry.

The bank's former chief executive Charles "Chuck" Prince, making his first public appearance since resigning at the end of 2007 in the face of spiralling losses, said he was sorry that no one had foreseen a calamity that led to two taxpayer bailouts for the company.

The Financial Crisis Inquiry Commission (FCIC), set up by the US government to investigate the causes of the meltdown, has turned its attention to Citigroup, which was the country's biggest bank and remains squarely in the camp of firms deemed "too big to fail".

Yesterday's testy hearing in Washington also took evidence from Robert Rubin, the former Goldman Sachs boss and US Treasury Secretary under Bill Clinton, who was one of Citigroup's most senior board members until last year. He has been criticised for taking $15m (£9.8m) a year in salary and bonuses as Citigroup headed to the brink of bankruptcy.

Mr Prince, who quit in November 2007, as losses on sub-prime mortgage investments were emerging, told the FCIC: "I can only say that I am deeply sorry that our management – starting with me – was not more prescient and that we did not foresee what lay before us." Mr Rubin also expressed "regret". ..........(more)

The complete piece is at: http://www.independent.co.uk/news/business/news/citigroup-bosses-under-fire-for-role-in-credit-meltdown-1939808.html

[aquart]

1. Talk is cheap.

They seem quite comfortable living with their "regrets."

[Flying Dream Blues]

2. And their *sob!* bonuses! nt

[WillYourVoteBCounted]

3. excellent.

Shitibank. Perfection.

[jwirr]

4. We have only seen the tip of the iceberg. What about all those risky

credit card loans to students (not school loans) and the elderly on fixed incomes. Many of them are bad risks. No collateral loans are a risk to almost anyone. They should be looking for ways to help with these loans to.