Hire new agents, preferably Certified Public Accountants, who can ferret out the fraud in Citi’s bad investments. And then indict the miscreants, who covered up these fraudulent acts
CitiGroup: The Deep Black Hole
[Genesis Of The Financial Meltdown]
Citigroup is the black hole of the American financial system.
The Treasury has already given Citigroup $45 billion in cash and has guaranteed $306 of financial guarantees for Citi’s high risk assets. In the latest quarter Citi declared a loss of $8.2 billion.
The Treasury’s investment is wasted. Citibank is bankrupt. The only solution is to nationalize Citi. The government must then strip Citi of its good assets and bad assets.
Place the bad assets in a form of Resolution Trust Corporation. Sell the good assets, preferably to a foreign bank so that there shall be some good honest competition; and more importantly so that some American hedge firm, trading on inside information, does not purchase the good assets at a stripped price and then sell the assets for a 400% profit in a few years.
Expand the Federal Bureau of Investigation and the Department of Justice. Hire new agents, preferably Certified Public Accountants, who can ferret out the fraud in Citi’s bad investments. And then indict the miscreants, who covered up these fraudulent acts- especially those who knew that these loans were worthless- and have them serve long prison sentences.
Believe me the one thing that scares the boys of Wall Street is prison; especially the showers.
Charles Schumer will not like seeing his friends and campaign contributors in prison, but that is too bad. Schumer’s praise of financial innovation, while his friends donated money to the Democratic Party and to Schumer’s campaign, has ruined the world economy.
Schumer’s insistence that his hedge fund friends, pay 15% income tax is proof that Schumer is nothing but a paid for shill for the individuals.
There is no choice. Later this year and next the commercial real estate market may collapse. And that would put the death knell in several other banks.
But most importantly anybody, who was a disciple of either Robert Rubin or Alan Greenspan, must be forced to resign from any decision-making position. Rubin and Greenspan are the two individuals most responsible for the collapse of American banking.
There is no excuse. Rubin and Greenspan had to have known that there actions were creating a huge bubble.