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Friday, October 28, 2016

New Citigroup Looks Too Much Like The Old One

Feb. 24 (Bloomberg) — Two years ago, Citigroup Inc. embarked on one of those feel-good corporate-image campaigns, aimed at showing a skeptical public that it could be trusted again. Citigroup was a “fundamentally different” company from what it had been during the financial crisis, it promised, a mantra its executives have repeated ever since.

“The new Citi has a clear strategy,” Chief Executive Officer Vikram Pandit said in a February 2010 video on the company’s website. “We’re going to stand for the financial- services company that practices responsible finance. Making sure we’re transparent. Making sure we’re honest.”

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  • Howz 1

    The financial sector of our economy is corrupt to the core. Most of them should have gone to jail but they know too many high ranking people for that to happen. They collectively have no moral compass, and are more dangerous to the country than any of the terrorist groups. Their only motivation is personal greeed and now instead of trying to control the 2 parties by proxy, they are runing one of their own for president (Romney) so no one will ever again try to control or regulate them. The only way to deal with them is to break them up, charge their management criminally and use RICO against them and their families, just like the criminal enterprises they run, instead of a civil suit. If we still had the stocks,
    make them face the same public humiliation that they made millions face in this country. Only then will you ever have real reform.

  • concernedusa7

    The ascine banking mergers, resulting in unmanegeable banking conglomerates is destroying The United States of America and with it our Democracy!
    Every bank MUST be local and limited to six branch offices, Credit Unions should be encouraged and promoted, again limited to six local branch offices.
    If we need a Bank for International Trading that Bank should be a Government Owned Bank Run by a contracted Public Consutant Group, with Government oversight.

  • Sleipnir

    If Citigroup or any othe financial institutions are found guilty of making even one fraudulent loan they should be fined and the CEO’S prosecuted and fired from their positions. Then if they continue the practice of risky loans they would have to absorb the losses….no bailouts. Another way to stop this is if shareholders vote their proxies to stop these practices instead of voting the way the company recommends which is usually to award huge bonuses even though they aren’t doing a good job.

  • fordneri

    If you fine a thief $100 for stealing $10,000. Make restitution for him and refinance his new operation at no cost to him. Refuse to prosicute or incarcerate him. Blame his victims for being stupid. Guarantee him the same circumstances and opportunities he had when he commited the origional crime if he promises to be a good boy. Have the Supreme Court of the United States create additional unpiercable veils protections for him and a political party that swears in public to protect him no matter what he does. Would you change? If you evan considered changing your ways most people would wonder if you were crazy or just super stupid. All these professional economic media yahoos say things will get better when certainty is restored. I am not buying that, because certainty has been restored. We are absolutely certain that the minute we trust the big banks that screwed us the last time and reinvest they will screw us again with the same level of assistance from government regulators and corrupt politicians.

  • cynic32

    Seems to me that maybe the financial crisis of 2008 resulted from a lot of corruption and a lot of incompetence. Blame shouldn’t ALL be at the top, however, since there are thousands (or maybe hundreds of thousands) of realtors and loan officers that originated the faulty loans, wanting to make as many sales and loans as possible to get paid more commissions. Middle managers probably get rewarded in proportion(?) to the volume of loans their staff produces. There is little incentive for these people to be unbiased about borrowers’ qualifications for FHA or any other kind of loan.

    Higher up the corporate ladder, those who review the loans may be corrupt or incompetent or both. The sneaky guy can see the borrower doesn’t have it but certifies the loan anyway for FHA backing. The incompetent guy relies on the word of his subordinates, and doesn’t check before certifying. Either way, the whole country loses. We need a better way for compensating loan officers. AND we don’t need FHA backing loans, for therein lies the problem – when banks can “pass thru” any losses, they WILL, be it from incompetence or corruption.

  • cynic32

    All depositors should fight corruption in the banking system by boycotting any bank called into question by government investigators. Transfer your deposits to
    “honest” banks. If enough of us do that, I’m sure ALL banks will take notice.

  • What we need to do is put our money in either community banks or credit unions. That will stop a lot of that crap. Besides, community banks work better for the consumer in my opinion as do the credit unions, not to mention they are not political.