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2009-03-22 — blogspot.com
The house never sold because Citigroup had it priced way above market. That is incompetence, lack of concern, an overworked unit or a combination of the above. I vote for the latter. ... In November, the government agreed to limit Citigroup's losses on a portfolio of $301 billion of troubled assets. Last month, the government issued a similar guarantee to Bank of America covering $118 billion in troubled assets. In both cases, the companies agreed to absorb an initial increment of losses -- about $30 billion for Citigroup and $10 billion for Bank of America -- with the government absorbing 90 percent of any subsequent losses. When taxpayers are guaranteeing 90% of the losses above $30 billion, a figure that was no doubt reached months ago, there is only a 10% incentive to do a job well. ... Citigroup Chief Executive Vikram Pandit received nearly $11 million of compensation in 2008. A month earlier, he testified to Congress that his compensation for 2008 was just $1 million. source article | permalink | discuss | subscribe by: | RSS | email Comments: Be the first to add a comment add a comment | go to forum thread Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately. |