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The FDIC is getting tougher on Citigroup (C) and wants a management shake-up. Regulators...

The FDIC is getting tougher on Citigroup (C) and wants a management shake-up. Regulators reportedly contacted Jerry Grundhofer, former CEO of U.S. Bancorp (USB), to gauge his interest in the CEO position. 
Comments (2)
  • CautiousInvestor
    , contributor
    Comments (3017) | Send Message
     
    I am not a fan of Citigroup or its mangement but this is another sign of how fitful, deceitful and capricious the administration's response has been to the financial sector crisis.

     

    After caving into Citi's argument that it could earn its way out of the mess and giving it a clean bill of health, while allowing it to raise less capital than needed, now the FDIC is leaning on the Fed and Controller of Currency to downgrade the health of Citigroup.

     

    If there is a problem it is financial and by what authority can this bullying administration oust Pandit? If this was the end game, it should have come prior to capital infusions; alternatively if Pandit was seen to be weak, why was it not addressed earlier? The answer to this question lies in boosting market confidence and stock prices by not upsetting things.
    5 Jun 2009, 07:57 AM Reply Like
  • Tony Petroski
    , contributor
    Comments (6373) | Send Message
     
    Jerry. Call up Mr. Liddy. See how well that worked out for him.
    5 Jun 2009, 08:32 AM Reply Like
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