Citigroup Said to Mold Deal to Help Enron Skirt Rules

New York Times ^ | 7/22/02 | RICHARD A. OPPEL Jr. and KURT EICHENWALD

[TLBSHOW]

How the Clinton Treasury Caused the Current Stock Market Fall (Intermingling of Businesses)



In 1998, Travelers CEO Sandy Weill and Citicorp head John Reed announced plans to merge their two financial powerhouses. There was one problem: U.S. law prohibited the merger of commercial banks with insurance companies and securities firms. The two companies were not deterred. A loophole in the law barring such combinations gave the two companies a two-year window before the merger ban would kick in. That would be plenty of time, they figured, to change a centerpiece of U.S. banking laws that had stood in place for more than 50 years.
There already was momentum in Congress in support of the financial deregulation that proponents supported under the misleading banner of “financial modernization.” But there were also major legislative blocks and hurdles, and no assurance of passage.

Enter Citigroup. Though Citicorp has opposed the deregulation bill, the merged Citigroup became its most important advocate, with Sandy Weill pitching a tent in the halls of Congress to lobby legislators.

Still, the bill remained mired in Congress, thanks to jurisdictional disputes among federal agencies, intra-industry conflicts and consumer group opposition.

Former Clinton Treasury Secretary Robert Rubin sealed the deal. After having left his Treasury Department post, but amidst negotiating his new terms of employment as chair of the management committee at Citicorp, Rubin brokered the final compromise to ensure passage of the financial deregulation bill.

While Citi’s top priority was an after-the-fact legalization of the tainted Citicorp-Travelers merger, much more was at stake — for both the financial industry and consumers. The bill has enabled not just this particular corporate combination, but the intermingling of businesses that were formerly, properly and prudentially, kept apart.

http://multinationalmonitor.org/mm2002/02april/april02editorial.html

[cactusSharp]

now the time line.....this was discovered from actions
back in 1999.Do not be fooled,it was happening from '96
to '99 to accumulate the telling totals.

[Mike Darancette]

Citicorp --- Big DemocRAT donors, I home the DNC and other Dems give ALL their CITIGROUP donations back.

[TLBSHOW]

the key is here


There was one problem: U.S. law prohibited the merger of commercial banks with insurance companies and securities firms.

[LarryLied]

Prince Alwaleed Bin Talal, nephew of Saudi Arabia's King Fahd, owns 4%, about 10 billion dollars worth, of Citicorp. And Robert Rubin,formerly of Goldman Sachs and the U.S. Treasury is a Director, a Member of the Office of the Chairman of Citigroup Inc.,and a member of the Citigroup Management Committee.

Americans are being jerked around big time.

No wonder Democrats killed drilling in ANWR and Lieberman has called for more Palestinian immigration into the USA.

[TLBSHOW]

A person familiar with the matter says, the Justice Dept's Enron Task Force also is looking into the roles that Citigroup, J.P. Morgan, Merrill Lynch & Co. and National Westminster Bank may have played in Enron's demise. IMPACTING... http://www.drudgereport.com/

[TLBSHOW]

A person familiar with the matter says, the Justice Dept's Enron Task Force also is looking into the roles that Citigroup, J.P. Morgan, Merrill Lynch & Co. and National Westminster Bank may have played in Enron's demise. IMPACTING... http://www.drudgereport.com/

[Vidalia]

Oh yes, all of this is "alleged"...

Citi-Group (previously Citi-Banc) is as dirty as they come, and D.C. Hill folk used the banking and "other services" for at least the last 15 years.

Hello, Mr. Dirty Alphabet agent who had been fired, released from duty, or "couldn't be accounted for", etc. that would be hired to "clean up" the "loose ends".

The rogues could walk into any scene and gather all the info, including evidence, and would not be questioned, since these different offices never "talked" to one another.

Catching the drift?

Wanna guess who never turned in their badges or stash of firearms?

A "throw down" or whatever the slang is these days still means the same thing.

Or who continued to have access to the most wide-based (inclusive of international) fingerprint and personal data, and have even been caught falsifying (exchanging) prints to field officers?

And who have obtained releases for and recruited convicts for wet ops against civilians who could expose the workings of all of the above?

These expose's will favorably affect the market...Back to a modicum of initial honesty in more than just the market sector.

The larger question is how many of your "honoured" lying bastard Congressmen and Representatives is this going to take down.

The latest votes in the Senate may give you a clue....or not...

[TLBSHOW]

it is our duty to expose the democrats for what they did to this economy!

[willgetsome]

NOTE TO PRESIDENT BUSH: Declare a War on Corporate Crime. Tell the people that you will launch an investigation on corporate accounting practices from 1990 until now. It seems there is much that went on during the giddy days of Clinton/Gore that we are now paying for. Also ask Mr. Clinton and Mr. Gore to participate in this investigation so that the American people see that justice is served.

[mwl1]

Media already covering up for Rubin and the RATS. GOP had better grow some cajones.

[jackbill]

Curious. Not one mention of Robert Rubin in this article and not one mention of the phone calls that he made to the Treasury Department, trying to get them to go easy on Enron's credit rating.

I wonder why?

[MJY1288]

I find it interesting that the NYT's didn't mention Robert Rubin in this article

[aristeides]

How did they get Phil Gramm on board? Wasn't he chairman of the Senate Banking Committee?

[mwl1]

Where are our leaders??? GOP should be shouting from the rooftop that Daschle, Lieberman, et al give back every dime of donations from Rubin and Citigroup!

[aristeides]

Gerald Ford and John Deutch are also directors.

[Howlin]

FYI.

[MJY1288]

I say wait for it to brew a while, October 1st sounds like a good time to expose them all :-)