Here we go again.
July 9, 2014
A recent Reuter’s news story tells us that Citigrope is on the verge of paying out $7 billion to settle the probe of their defrauding of investors with falsely rated mortgage securities. Who could imagine a great company like Citigrope doing such a thing? Seems preposterous. I presume that if we read their mission statement we would be assured of their utmost integrity as one of the leading financial firms in the world.
Actually, here is the mission statement from their website:
Financial Ingenuity & Responsible Finance
Citi works tirelessly to provide consumers, corporations, governments and institutions with a broad range of financial services and products. We strive to create the best outcomes for our clients and customers with financial ingenuity that leads to solutions that are simple, creative and responsible.
So, they “strive to create the best outcomes for their clients and customers.” That being the case, this offer of attempting to ease the pain of those that were defrauded is obviously a very benevolent move on the part of this financial behemoth. I am certain that they are fully convinced that they did no wrong and are admitting no wrong doing, but just want to get this behind them so they can move on with their life of helping others – helping them enjoy “the best outcomes.”
Their acceptance of a settlement of these charges that they are not guilty of is just like some homeless guy who confesses to stealing a loaf of bread in order to avoid a longer sentence if found guilty of other thefts, even though he didn’t do any of it. And, of course, in the case of Citigrope, I would imagine those who purportedly conspired in this alleged fraudulent activity are quite willing to allow their stockholders to pay this sum in order for them to avoid any criminal charges for something they didn’t do.
Now Citigrope is a company once headed by the brilliant and heralded Bob Rabid, who assisted Sandy Wild and Bill Cliptum in removing that troublesome Glass-Steagall Act from the path of the financial behemoths such as Citigrope. This, of course opened the door for financial firms large and small to do most any freaking thing they wanted with our money. Our money – the money of working families, retirees, investors, struggling homeowners, pension funds, governments, hospitals, colleges, universities, religious organizations, you name it.
Someone said that they received $45 billion from the government’s Troubled Asset Relief Program, and won a federal bailout that will limit losses on $306 billion of toxic assets. Well, at least this might ease the pain of this $7 billion donation they are about to make. Let’s see: $45 billion + $306 billion – $7 billion – yes, if my math is correct that should cover it.
These benevolent Wall Street behemoths have already displayed their benevolence in these matters. They willingly accepted the bailout money forced upon them against their will in order to restore their financial well-being after they couldn’t pass the stress test so magnanimously bestowed upon them by Timothy Geithner, one of them. Then they willingly accepted the free loans from the Federal Reserve that were forced upon them so they could do more deals. Then they willingly bought up all of the foreclosed homes that the working class were thrown out of because they couldn’t pay the fraudulent loans they were swindled into. Then they willingly agreed to rent to these desperate former-homeowner, homeless families at exorbitant rents. So, my question is, how much more could they have done?
I know that some of us feel that we were hooked and reeled like a hungry fish, then fileted and served to the rich and powerful, then asked to be understanding about it because it is all for the good of the economy. It keeps the “job creators” in the dough so they can continue to create more jobs for us. And obviously we will need more jobs for several reasons: 1) many of those who thought they were retired have lost their retirement funds and now need a job; 2) many of those who thought they were retired are no longer getting any interest income on their retirement funds due to the actions of the Federal Reserve in their moves to improve the economy and keep the behemoths in business; 3) many of those who have been working one job now need 2 or 3 jobs in order to pay the higher housing costs; 4) many individuals and small businesses are suffering from tighter lending requirements brought on by the financial disaster which they had no role in creating.
So, even though Citigrope had nothing to do with this whole debacle, they are considering stepping up to the line and paying an undeserving penalty for trying to help all of us.
Like they say, “acts of human kindness never go unpunished.”
We know they “work tirelessly to provide consumers, corporations, governments and institutions with a broad range of financial services and products.”
Thank goodness they “strive to create the best outcomes for their clients and customers”, otherwise this could have really gotten ugly.
Think about it!
Convince someone today to help us elect better leaders, please!