— July 2012: Sandy Weill takes it all back, calling for investment banking to be separated from deposit taking—effectively reinstating Glass-Steagall he helped dismantle. His bad!
Phew!
As Citi’s narrator says in the video, “Our reputation rests on the integrity and dedication of those that came before us.”
* List of updates: I originally said Weill bought Salomon Smith Barney in 1993. Smith Barney combined with Salomon in 1998. I added Mitchell’s tax evasion settlement in the 1933 item (h/t Mark Gimein). I added Sandy Weill’s astonishing support for breaking up the too big to fail banks.
We are witness to the development of a compelling new economic theory: Thimbilistic Chittumism.
TC Theory posits several contrarian premises, namely:
1. Anytime any bank makes money, somebody needs to go to jail.
2. Anytime any bank loses money, somebody needs to go to jail.
3. Anytime any bank exists, somebody needs to go to jail.
4. Workers (except doctors, lawyers, bankers, brokers, managers, etc.) demanding the highest possible wages = good.
5. Consumers (except news consumers, of course) demanding lowest possible prices = good.
6. Investors demanding the highest possible profits = evil. PURE, SATANIC evil.
7. The Gubmint can (and should) run things better than private enterprise can.
#1 Posted by padikiller, CJR on Fri 9 Mar 2012 at 06:47 PM
Don't forget the money laundrying which is a problem with American banks even today.
#2 Posted by Thimbles, CJR on Sat 10 Mar 2012 at 10:49 AM
This is a fun little read of old citi history:
http://www.multinationalmonitor.org/mm2002/042002/interview-giordano.html
#3 Posted by Thimbles, CJR on Sat 10 Mar 2012 at 02:48 PM
The press inveighs against "negative advertising" 24/7 but dishes out "negative journalism' by the ton. Every twerp knows that the mission of Corporate P.R is to make the business look good.
#4 Posted by M. ALTAMIRANO, CJR on Sun 11 Mar 2012 at 12:52 PM
I'll second Thimbles on the dictator/embezzler/drug lord money laundering angle. When you look at Citi's "Private Bank" subsidiary you really see what the company is all about.
Gabon's Omar Bongo, Mexico's Raul Salinas, Nigeria's Mohammed Abacha and Bhutto's husband, Asif Ali Zardari, in Pakistan, all moved tens of millions through Citi in Switzerland.
One could argue that all those fellows were merely very hard-working, I suppose.
Or you could say it's all ancient history, since no one, to my knowledge, has bothered with a serious audit of this stuff in more than a decade.
#5 Posted by Edward Ericson Jr., CJR on Mon 12 Mar 2012 at 04:05 PM