Seeking Alpha

Citigroup next target for government after JPMorgan?

  • After the government is done relieving JPMorgan shareholders of something in the area of $11B, Citigroup (C -0.5%) could be the next target, suggests Charles Peabody. U.S. Attorney General Holder has already said to expect announcements aimed at banks other than the House of Dimon, and Citigroup makes for a plump target.
  • Citigroup's litigation costs since 2008 have summed to $8.1B - chicken feed compared to about $20B for both JPMorgan and BofA. The government may just want to bring that more into line. Citigroup has upped its legal cost reserve from $4B to $5B In the past year.
Comments (18)
  • Deja Vu
    , contributor
    Comments (1325) | Send Message
     
    Are any legal firms advising TBTF banks publicly traded?
    30 Sep 2013, 12:16 PM Reply Like
  • Tack
    , contributor
    Comments (13816) | Send Message
     
    How does it serve the economy to damage banks' balance sheets and/or shareholder value with contrived fines for behavior in which the Government, itself, was complicit, right from the outset?

     

    Government shake-downs of banks are just grubbing for money, from any source, just as Government always does. An unquenchable thirst.
    30 Sep 2013, 12:24 PM Reply Like
  • Chancer
    , contributor
    Comments (3027) | Send Message
     
    It is more about "political image" for Democrats. Holder has gotten a lot of criticism for not going after Wall Street for financial collapse. Attacks on big banks make headlines.
    30 Sep 2013, 12:33 PM Reply Like
  • phxcrane
    , contributor
    Comments (437) | Send Message
     
    I'm sure its just a coincidence that a huge contributor to the Democratic party is the trial Lawyers.
    30 Sep 2013, 12:28 PM Reply Like
  • jmjjmj1
    , contributor
    Comments (169) | Send Message
     
    ...yes let the banks steal at will, good suggestion.
    30 Sep 2013, 01:27 PM Reply Like
  • racchole
    , contributor
    Comments (354) | Send Message
     
    But our penalties do very little to deter future behavior. There are many parties to blame, other than the banks. That is the point requiring the most focus.
    30 Sep 2013, 03:49 PM Reply Like
  • Trade In Mexico
    , contributor
    Comments (699) | Send Message
     
    The banks are not stealing at will. How about the masses who stopped paying their mortgages and stayed in the house for 2 years and then left huge losses onto banks and therefore the taxpayer??????

     

    Living in your house for free and then dumping huge losses on your neighbors and other taxpayers was the stealing at will that nobody talks about!
    30 Sep 2013, 04:04 PM Reply Like
  • caupachow
    , contributor
    Comments (429) | Send Message
     
    shakedown, plain and simple.
    30 Sep 2013, 01:35 PM Reply Like
  • piprock
    , contributor
    Comments (2) | Send Message
     
    for an industry that is supposed to manage risk, they sure did a piss-poor job. they should be fined. these levies don't go far enough. they killed the golden goose and now have to pay. they all went bankrupt. hopefully these fines will remind them of their true obligation: don't blow up. but I doubt it.
    30 Sep 2013, 02:39 PM Reply Like
  • lauraiskojacobs
    , contributor
    Comments (13) | Send Message
     
    JPM and Wells Fargo were not bankrupt and were not going to fail. The Gov't made them take TARP then crapped on them for taking it.

     

    At least Willie Sutton was said he robbed banks "because that's where the money is".
    30 Sep 2013, 09:32 PM Reply Like
  • june1234
    , contributor
    Comments (2864) | Send Message
     
    Pass the collection plate. "Done" JPM fines amount to about 10% of last yrs JPM revenue. See you next time; cost of doing business
    30 Sep 2013, 03:38 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Legal fees are another cost that go into the fees passed on by the bank to customers. Or more aggressive speculation on loans and investments which means more risk.

     

    It is reprehensible that our government behaves like a Mafia family. "Plump targets" is how the local thug views his victims. There is absolutely no leadership or moral authority left in government.
    30 Sep 2013, 05:16 PM Reply Like
  • charliezap
    , contributor
    Comments (1453) | Send Message
     
    The banks deserve everything that they are getting -- and more!

     

    Please don't tell me that putting a AAA rating on packages of subprime mortgages was not fraudulent. Please don't tell me that the banks (including Bear, Stearns, Lehman Brothers, and Citi) that sold these packages did not know they were fraudulent. Some, such as Goldman Sachs, were actually shorting the securities while selling them to customers.

     

    It is obvious that it was the banks that showed "no leadership or moral authority", not the government (except for Alan Greenspan).

     

    So where are they now? Where are the chairmen/CEO's of Bear, Lehman, Citi, BAC, WaMu, Countrywide, and Merrill Lynch, who perpetrated this massive fraud on taxpayers and the public. Where are they now? One place where they are not is jail, and the central question is WHY NOT?
    30 Sep 2013, 10:29 PM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    You cannot decide if you want to hold faceless banks responsible or specific people. Most of those people your mention are probably living in the Hamptons making donations to political parties and many are Dems. Where is Corzine the poster boy for Dem fundraising and financial fraud?

     

    Banks don't deserve anything. You cannot throw a bank in jail and have the sins of a few are laid on 100's of thousands of people by taking down a bank. Mostly it will just be passed on to bank customers and employees in higher fees and lost jobs. Laughable if not so ridiculously stupid.

     

    But people will not go to jail because the politicians are crooked and had their hand in the honey hole so they don't want any trials. Nobody in Washington wants disclosure.

     

    AAA ratings were not put on by the banks anyways but don't let facts get in the way of your uninformed rant.

     

    Are you sure you have an MBA? You are loose with your facts. More like a populist with a bong.
    1 Oct 2013, 01:52 AM Reply Like
  • Jason B
    , contributor
    Comments (331) | Send Message
     
    Please stop posting. You expose yourself.
    1 Oct 2013, 08:39 AM Reply Like
  • TomasViewPoint
    , contributor
    Comments (4845) | Send Message
     
    Jason

     

    Please go away. You apparently don't have anything to say.
    1 Oct 2013, 12:47 PM Reply Like
  • pigeonguy
    , contributor
    Comments (115) | Send Message
     
    The shareholders are the one paying the fines not the people who may or may not have screwed up. If you want to change behavior fine the individuals who are responsible. The shareholder gets screwed by managements poor decisions and then they pay again when the government goes after the shareholder with the fines.
    30 Sep 2013, 10:09 PM Reply Like
  • Jason B
    , contributor
    Comments (331) | Send Message
     
    Charles PEABODY??? HAHAHAHAHA!!!

     

    Where was the $7 Billion loss last quarter Charles? How about the quarter before that?

     

    How does this lobotomy victim still have a job?

     

    HAHAHA!
    1 Oct 2013, 08:39 AM Reply Like
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