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The Big C, Citigroup's Bailout
plastic
post Posted: Sep 17 2020, 02:33 AM
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Need to study up on the Japanese banking crisis post the eighties bubble economy. Now that was a housing boom bubble.

There will be a time when bank bonds look like the worst thing you could ever buy because of the risk of default. That will be the time to move. Just pick wisely because there may be a default. Gotta know the terms of the deed and the bank needs to have good governance. Anyone who relies on the took big to fail mantra will get desecrated.

It will be great though having the bank in hock to you for a change.



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What did Uncle Mel do to us?
 
mullokintyre
post Posted: Sep 16 2020, 11:48 AM
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In Reply To: plastic's post @ Sep 15 2020, 07:44 AM

From the article Plastic linked below
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These reports come as a shock, since Corbat was being lauded just the other day for his progressive vision in maneuvering Fraser into position to be his replacement. It's certainly a blemish that Corbat, who has served as CEO since 2012, will see tarnish his legacy on his way out, while also making Citi vulnerable to political backlash during an election year.


A stunning example of the lax regulatory bodies when its more likely that poilitical backlash is a greater punishment than what the regulatory bodies themselves have done.
Wall street on parade

outlines the enormously unethical immoral, and probably downright illegal of Citibank.
QUOTE
The business media was abuzz yesterday with reports that two of Citigroup’s federal regulators – the Office of the Comptroller of the Currency and the Federal Reserve – are considering reprimanding the bank for failure to improve its risk management systems. Trust us: there is a lot more to this story than you’re reading about in the main stream press. Citigroup doesn’t do anything small. When it does something bad, it goes all in – sometimes even assigning a code name.

Let’s start with the “Dr. Evil” trade. That was actually the code name that Citigroup traders assigned to an attempt to exploit a weakness in a European bond trading system. Citigroup was fined $26 million in 2005 by Europe’s Financial Services Authority for the trades.

Citigroup employees gave another code name, “Buca Nero” – Italian for “Black Hole” – to an accounting maneuver that made debt appear to be an investment at the debt-strapped Italian dairy company, Parmalat. The company collapsed in 2003 in what became Europe’s largest ever bankruptcy.

In 2005 Citigroup settled with the Securities and Exchange Commission for $101 million for helping the notorious Enron inflate its cash flows and under report its debts. The same year, Citigroup settled with private litigants for $2 billion over its role in the bankruptcy of Enron.

Then there were those infamous SIV liquidity puts. In the leadup to Wall Street’s financial collapse in 2008, Citigroup had been creating Structured Investment Vehicles (SIVs) and using them to place toxic subprime debt off its balance sheet. The problem was that those SIVs promised to provide liquidity to buyers of its commercial paper if the market bulked and wouldn’t roll over the commercial paper. That meant that Citigroup, in providing those liquidity puts, had to put this toxic debt back on its own balance sheet and take massive losses. Citigroup’s stock went to 99 cents in 2009 as it was receiving the largest taxpayer bailout in U.S. history.

While all of the above had been going on, Sandy Weill, the Chairman and CEO of Citigroup, had amassed a fortune from the bank through a technique that compensation expert Graef “Bud” Crystal called the Count Dracula stock option plan. You couldn’t kill it; not even with a silver bullet. Nor could you prosecute it, because Citi’s Board of Directors had signed off on it.

The plan worked as follows: every time Weill exercised one set of stock options, he got a reload of approximately the same amount of options, regardless of how many frauds the bank had been charged with during that year.

Crystal explained in an article for Bloomberg News that between 1988 and 2002, Weill “received 96 different option grants” on an aggregate of $3 billion of stock. Crystal says “It’s a wonder that Weill had time to run the business, what with all his option grants and exercises. In the years 1996, 1997, 1998 and 2000, Weill exercised, and then received new option grants, a total of, respectively, 14, 20, 13 and 19 times.”

By the time Weill stepped down as CEO in 2003, he had received over $1 billion in compensation, the majority of it coming from his reloading stock options. (Weill remained as Chairman of Citigroup until 2006.) One day after stepping down as CEO, Citigroup’s Board of Directors allowed Weill to sell back to the corporation 5.6 million shares of his stock for $264 million. This eliminated Weill’s risk that his big share sale would drive down his own share prices as he was selling. The Board negotiated the price at $47.14 for all of Weill’s shares.
There have been some other strange things going on at Citigroup during this recent financial crisis. In July we reported that Citibank, the commercial bank owned by Citigroup, had received more than $3 billion in reimbursements from the Federal Reserve for loans that Citi had made under the Paycheck Protection Program. Those loans are guaranteed by the Small Business Administration so why would Citigroup need to be reimbursed for guaranteed loans? None of Citigroup’s peer banks – like Wells Fargo, Bank of America, JPMorgan Chase, Goldman Sachs or Morgan Stanley – took money from the Fed under this program. Just Citibank.

There are also numerous complaints online from Citibank customers that the bank is, without warning, cutting their credit limit on their credit cards. That doesn’t seem to square with the repeated representations from Federal Reserve Chairman Jay Powell that the big Wall Street banks are a “source of strength” during this economic crisis – the second one the U.S. is facing in a period of just 12 years.

Makes our banks look like angels.
Mick



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sent from my Olivetti Typewriter.

Said 'Thanks' for this post: Pendragon  
 
plastic
post Posted: Sep 15 2020, 07:44 AM
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Too big to fail but not too big to break up into a million different pieces.

New girl gets the job. Whatever it is.

https://www.zerohedge.com/markets/citi-ceo-...c-systems-snafu



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What did Uncle Mel do to us?
 
plastic
post Posted: Sep 5 2020, 08:48 AM
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Probably. He obviously got good legal advice looking at the proactive action he took to prove remorse and mitigate a repeat episode.

With behaviour like this you have to wonder what scruples he has in his work.

With some luck he'll be looking for a new job shortly...and not because of this incident. But because we have gone full circle.

Another BCCI if you ask me. House of Saud were majority shareholders during the GFC. Q regularly talks about enemy infiltration. No reason why that shouldn't include the banking system. Where do Antifa and BLM get their funding from?

Although, these things usually follow a person in the workplace despite the legal outcomes.

Being able to get away with something doesn't mean you actually do when it comes to the most important opinion; that of your peers.



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What did Uncle Mel do to us?
 
henrietta
post Posted: Sep 4 2020, 07:49 AM
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In Reply To: plastic's post @ Sep 3 2020, 03:58 PM

No punishment , so he'll do it again. A------e !

Cheers
J



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"Sometimes I sits and thinks, and sometimes I just sits." Satchel Paige

"No road is long with good company." Traditional
 
plastic
post Posted: Sep 3 2020, 03:58 PM
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And this is another example of why it couldn't happen to a nicer bunch of assholes.
Don't you know who I am? I'm very important. So very important.

https://www.nzherald.co.nz/nz/news/article....jectid=12361402
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An executive banker responsible for arrogant and bizarre alcohol-fuelled antics on board an international flight, including abusive threats to sack an Australian Federal Police officer, has faced court.

Citibank Sydney managing director Thomas Hasan Dubmore Cribb, 39, who an Australian court said had enjoyed a "stellar career", unleashed mayhem in the final hour of an Auckland to Sydney flight on February 21.

Cribb pleaded guilty to the obstruction of a Commonwealth officer and failing to comply with crew instructions.

The agreed set of facts reveal that as the flight began to descend the Surry Hills single father enjoyed a scotch before ignoring standard in-flight safety rules. Cribb pestered the man sitting in front of him, had a loud phone conversation when electronic devices weren't allowed, and ignored five requests from a flight attendant to return to his seat as he "just needed to p***".

Australian Federal Police officers were called to meet the flight and remove Cribb, described as being "belligerent and aggressive". He made a scene as he left, whining it was "highly embarrassing" and demanded to see the supervisor.

"You have no idea who I am, you don't realise how big a mistake you've made," he said.

The aggressive behaviour continued to build with Cribb saying "I can't believe this is Australia" before unleashing a tirade of abuse at a federal police officer.

"You're gone, I'm taking your badge, you've just f***ed up. I'm taking your job, you think you've got power, you're nothing."

As police went to arrest the angry man, he tried to escape, kicking out at two officers as he was held on the ground.

A series of character references painted the corporate giant as "a gentle soul", with Cribb's lawyer describing the actions as "bizarre" and being out of character.

Cribb told police he wouldn't talk until he could call his lawyer but later apologised for injuring a police officer's thumb.

The court heard a mix of booze and anti-anxiety medication played a role in the wild antics, with the banker hauled before the Citibank board and now regularly seeing a psychologist.

Magistrate Jennifer Atkinson, in considering Cribb's remorse, lack of criminal history and positive steps to rehabilitation, placed him on a good behaviour bond without conviction.





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What did Uncle Mel do to us?
 

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plastic
post Posted: Mar 29 2020, 10:05 AM
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If the corporates are making a run on the banks already, just wait until the word hits the streets!
It couldn't happen to a nicer bunch of assholes.

https://www.zerohedge.com/markets/revolver-...-down-revolvers

QUOTE
"Revolver Run": Banks Suffer Record $200BN In Outflows As Frenzied Companies Draw Down Revolvers




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What did Uncle Mel do to us?
 
plastic
post Posted: Mar 27 2020, 07:10 AM
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In Reply To: wolverine's post @ Nov 17 2016, 08:56 PM

Where's my old mate gone to?



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What did Uncle Mel do to us?
 
plastic
post Posted: Mar 27 2020, 07:08 AM
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Slowly slowly, catch a monkey.
Couldn't happen to a nicer bunch of assholes.

https://www.zerohedge.com/markets/bizarre-r...e-banks-trouble

QUOTE
Bizarre Rise In Libor Prompts Questions About One Or More Banks In Trouble
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With 3M USD Libor rising for the 10th straight session as the benchmark fixed higher by 10.763bp on Thursday, the persistent increases in the London interbank offered rate "may suggest a widening gulf between those who have cheap access to funding and those who do not" - in other words, one or more banks may be scrambling for liquidity, and worse, someone is aware of this.




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What did Uncle Mel do to us?
 
plastic
post Posted: Mar 19 2020, 06:24 PM
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He's still a patriotic American in front of the cameras...putting on a show.



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What did Uncle Mel do to us?
 
 


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