© 2008 ktownlowdown

Citigroup’s Deep Pockets

I found this article to be quite interesting.

Basically, Citigroup made some really poor greedy business decisions by loaning money to people that they knew couldn’t afford a home without some “new” types of loans and schemes, and now they are getting the Saudi’s and the Chinese to bail them out. I am all for capitalism and foreign trade and such, but it makes me a little uneasy that the largest bank in America is so heavily dependent on foreign investment.

I did think that the reporting on this story was surprisingly blunt in regards to this matter:

“…its former chief executive officer, Charles Prince, was forced out amid news of the heavy losses related to bad bets on mortgage securities and an ailing housing markets.”

[emphasis added] Bad Bets…that’s calling a spade a spade.