Friday, January 16, 2009

Citi Playing Corporate Shell Game to Hide Assets…

What Citi is doing here is a just a plain old fashioned corporate shell game. Look over here, NO – over here – Which shell is the crap under?

This, under any sense of decency, is just WRONG. It is also illegal to create a shell company for the purpose of hiding assets. Yet, this is just another example of our Government allowing the BS and not holding these companies to the rule of law. When the rule of law is not enforced, lawlessness follows. In this case, all these large banks comprise the Federal Banking System, they effectively ARE THE FED. And that’s why the control of the central banking system must be returned to the people, and I believe that will ultimately be a fallout and consequence of their actions.

Look at some other countries around the world, such as Ireland. They are nationalizing their banks saying that if they must use taxpayer money to bail them out then ownership of those companies belongs to the people. This should always be the case, in my judgment, private individuals should not profit from the manufacture and distribution of a money system that rightly belongs to the people in the first place!

The actions of Citi are disgusting:
CNN article
Citi splitting into two after $8.3 billion loss

Results come in far worse than analysts were anticipating; banking giant will realign into two units, ending its so-called 'universal banking' business model.


By David Ellis, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Citigroup reported a much bigger-than-expected $8.3 billion quarterly loss Friday, while the beleaguered bank also revealed plans to split up into two businesses, effectively bringing an end to the company's "financial supermarket" model.

Under the new arrangement, Citigroup would split into two units: Citicorp and Citi Holdings. Citicorp would house, among other things, the company's private and investment bank as well as its credit card and consumer banking business.
Citi Holdings would incorporate its so-called non-core businesses, including its Smith Barney brokerage and a pool of troubled assets that have plagued the firm for more than a year.

CEO Vikram Pandit said the difficult economic and market environment for both Citigroup and the broader banking sector forced the company's hand, adding that the move will help simplify the organization and help better serve both clients and customers.
"The realignment will preserve what makes Citi unique -- its global, universal banking footprint," he said in a statement. "We will continue to move aggressively to get Citi back on the right track and return it to a position of sustainable financial success."

Pandit: No rush to sell any more businesses
Citigroup (C, Fortune 500) stock rose nearly 6% in pre-market trading following the release. But shares of the battered bank have plunged 43% so far this week due to concerns about its future.

Citigroup, which ranks as one of the world's biggest banks by assets, said it would work to implement the changes as quickly as possible, with the new structure reflected in its reporting by the second quarter of this year.

Analysts have speculated in recent months that the company may look to sell additional divisions in an effort to raise cash. During a conference call Friday morning, Pandit said Citigroup would continue to look at all options for its Citi Holdings businesses, but that they were not in a rush to sell some of those units.

The broader restructuring move, however, will effectively reverse the 1998 merger between Citicorp and Travelers Group overseen by then-CEO Sanford Weill.

That deal created the modern-day Citigroup and its so-called "universal bank" business model, which aimed to offer clients and customers a smorgasbord of financial services.
For years, both shareholders and analysts have clamored for Citigroup to abandon this business model because they believed it did not work. The latest results from Citi seem to prove them right.

Another tough quarter for Citi
The New York City-based bank recorded a net loss of $8.29 billion, or $1.72 a share, during the fourth quarter, representing the company's fifth-straight quarterly loss. The bank lost a total of $18.72 billion in 2008…