They know exactly what they're doing. (8+ / 0-)
Failure and irresponsible behavior are profitable to them. This behavior on a gigantic scale makes it necessary for the taxpayer to bail them out. The system of reckless behavior and corrupt, senseless investment is working for them.
by Linda Wood on Tue Dec 01, 2009 at 10:37:46 AM PST
From Industry News "Citi Stands Alone."
Vikram Pandit is the last man standing—and he can’t be enjoying the fact.
The surprise move by Bank of America to sell $19 billion of new equity in order to repay at least some of the $45 billion in TARP (Troubled Asset Relief Program) that giant bank owes the Treasury Department and taxpayers leaves Citigroup as the only one of the large Wall Street players to not yet make a dent in its TARP debt. But then, there doesn’t seem to be a single problem area worldwide to which Citigroup hasn’t managed to have some exposure, from subprime mortgage-backed CDOs to the shifting sands of Dubai’s real estate market.
In short, Citigroup can’t afford to turn off government life support by repaying TARP funds; if it did, odds are high that the institution would promptly flat-line. At the same time, Pandit faces a nasty catch-22. If he doesn’t start paying back TARP funds quickly, he’ll have a growing PR problem with his customers, who may well prefer to deal with a financial institution that doesn’t have to cling to the government to avoid collapse.
BTW, Citibank CEO Vikram Pandit is, and will remain a complete tool: "We are and will remain a bank." WTF is THAT supposed to mean?
Related Kos thread: How scum bucket large U.S. banks keep your money forever and earn interest when you go to cash a check, they use that money to pay their top executives healthy bonuses.