Ex-Citigroup leaders contrite, defensive on crisis

Reuters via Fidelity.com ^ | 4/8/10 | Rachelle Younglai and Kevin Drawbaugh

[mlocher]

WASHINGTON (Reuters) - Charles Prince and Robert Rubin, who led Citigroup (Symbol : C

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) in the run-up to the 2008 banking crisis, voiced regrets on Thursday but accepted no responsibility for mega-bank's massive losses.

The two came under heavy fire before a congressional panel hearing for being blind to financial risks that Citi took on, which ultimately led to its near collapse, prevented only by a $45-billion taxpayer bailout.

His hands visibly shaking as he answered questions, Rubin told congressional investigators he was not a decision-maker at the bank during the worst of its troubles. The former U.S. treasury secretary in the Clinton administration said Citi's risk-assessment ability was strong.

Former CEO Prince came to the defense of Rubin saying as an advisor he was not responsible for Citi's massive losses. Prince offered up multiple apologies for his own ignorance.

"I can only say that I am deeply sorry that our management -- starting with me -- was not more prescient and that we did not foresee what lay before us," Prince said.

But some members of the Financial Crisis Inquiry Commission -- charged by Congress with explaining the origins of the worst U.S. financial crisis since the Great Depression -- did not buy the half-hearted mea culpas.

[mlocher]

More of the same. Congress is trying to find blame in the financial crisis in the bankers. This is strictly a PR event to pave the way for needless, and dangerous, financial regulations by the Obama Administration. If congress really wanted to solve the problem, they would look at themselves and the Community Reinvestment Act.

[ForGod'sSake]

If congress really wanted to solve the problem, they would look at themselves and the Community Reinvestment Act.

Not as long as they can get the bankers to come in and bow and scrape. Sickening display IMHO.

BTW, why haven't we heard another word about the Sept 2008 "run on the money markets"?

[freekitty]

Is the title a joke?

[Wolfie]

The beauty of the current system is that if EVERYBODY is at fault, tnen NOBODY can be blamed. The people buy into it whole-heartedly so their favorites aren’t held culpable, whatever side they’re on.

[ForGod'sSake]

The beauty of the current system is that if EVERYBODY is at fault, tnen NOBODY can be blamed.

Spot on! The result and, PLAN I submit, of criminals running the government is they attract and even cultivate kindred spirits til it reaches a point where the defense becomes "EVERYBODY does it". When Dims are running the asylum the faux press breaks their collective necks finding "compelling news" elsewhere, like the latest American Idol dustup. When Pubbies are running the asylum the drum beat from the faux press can find no bottom to "the culture of corruption".