DOCSLIB.ORG

Citigroup: a Case Study in Managerial and Regulatory Failures

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Citigroup: a Case Study in Managerial and Regulatory Failures GW Law Faculty Publications & Other Works Faculty Scholarship 2013 Citigroup: A Case Study in Managerial and Regulatory Failures Arthur E. Wilmarth Jr. George Washington University Law School, [email protected] Follow this and additional works at: https://scholarship.law.gwu.edu/faculty_publications Part of the Law Commons Recommended Citation Arthur E. Wilmarth, Jr., Citigroup: A Case Study in Managerial and Regulatory Failures, 47 IND. L. REV. pp. 69-137. This Article is brought to you for free and open access by the Faculty Scholarship at Scholarly Commons. It has been accepted for inclusion in GW Law Faculty Publications & Other Works by an authorized administrator of Scholarly Commons. For more information, please contact [email protected]. CITIGROUP: A CASE STUDY IN MANAGERIAL AND REGULATORY FAILURES ARTHUR E. WILMARTH, JR.* “I don’t think [Citigroup is] too big to manage or govern at all . [W]hen you look at the results of what happened, you have to say it was a great success.” Sanford “Sandy” Weill, chairman of Citigroup, 1998-20061 “Our job is to set a tone at the top to incent people to do the right thing and to set up safety nets to catch people who make mistakes or do the wrong thing and correct those as quickly as possible. And it is working. It is working.” Charles O. “Chuck” Prince III, CEO of Citigroup, 2003-20072 “People know I was concerned about the markets. Clearly, there were things wrong. But I don’t know of anyone who foresaw a perfect storm, and that’s what we’ve had here.” Robert Rubin, chairman of Citigroup’s executive committee, 1999- 20093 “I do not think we did enough as [regulators] with the authority we had to help contain the risks that ultimately emerged in [Citigroup].” Timothy Geithner, President of the Federal Reserve Bank of New York, 2003-2009; Secretary of the Treasury, 2009-20134 * Professor of Law and Executive Director of the Center for Law, Economics & Finance, George Washington University Law School. I wish to thank GW Law School and Dean Greg Maggs for a summer research grant that supported my work on this Article. I am indebted to Eric Klein, a member of GW Law’s Class of 2015, and Germaine Leahy, Head of Reference in the Jacob Burns Law Library, for their superb research assistance. I am also grateful for helpful comments provided by Anat Admati, Peter Conti-Brown, Anna Gelpern, Robert Hockett, Robert Jenkins, James Kwak, Saule Omarova, and participants in conferences at the Indiana University Robert H. McKinney School of Law and the University of Ottawa Faculty of Law and a joint program hosted by the Section on European Law and the Section on Financial Institutions and Consumer Financial Services of the Association of American Law Schools. Unless otherwise indicated, this Article includes developments through October 31, 2013. 1. Timothy L. O’Brien & Julie Creswell, Laughing All the Way from the Bank, N.Y. TIMES, Sept. 11, 2005, § 3, at 31 (quoting Mr. Weill, and noting that Mr. Weill served as CEO of Citigroup from 1998 to 2003). 2. Eric Dash & Julie Creswell, Citigroup Pays for a Rush to Risk, N.Y. TIMES, Nov. 23, 2008, at A1 (quoting a statement by Mr. Prince in 2006). 3. Nelson D. Schwartz & Eric Dash, Where Was The Wise Man?, N.Y. TIMES, Apr. 27, 2008, § BU, at 1 (quoting Mr. Rubin), available at http://www.nytimes.com/2008/04/27/business/ 27rubin.html?pagewanted=all, archived at http://perma.cc/ARZ3-CUC7. 4. THE FINANCIAL CRISIS INQUIRY COMMISSION, THE FINANCIAL CRISIS INQUIRY REPORT: 70 INDIANA LAW REVIEW [Vol. 47:69 INTRODUCTION Citigroup has served as the poster child for the elusive promises and manifold pitfalls of universal banking. When Citicorp merged with Travelers to form Citigroup in 1998, supporters of the merger hailed Citigroup as the first modern American “universal bank”—i.e., the first U.S. banking organization since 1933 that could offer comprehensive banking, securities and insurance services to its customers.5 Citigroup’s leaders asserted that the new financial conglomerate would offer unparalleled convenience to its customers through “one-stop shopping” for a broad range of banking, securities, and insurance services.6 They also claimed that Citigroup would have a superior ability to withstand financial shocks due to its broadly diversified activities.7 Supporters of the Travelers- Citicorp merger further argued that U.S. banks needed universal banking powers in order to compete with European and Asian banks that already possessed “the ability to offer an array of banking and insurance products under one corporate umbrella.”8 Travelers’ chairman Sandy Weill declared, “We are creating the model financial institution of the future. In a world that’s changing very rapidly, we will be able to withstand the storms.”9 By 2009, those bold predictions of Citigroup’s success had turned to ashes.10 Citigroup’s high-risk, high-growth strategy proved to be disastrous.11 As a result FINAL REPORT OF THE NATIONAL COMMISSION ON THE CAUSES OF THE FINANCIAL AND ECONOMIC CRISIS IN THE UNITED STATES 303 (2011) [hereinafter FCIC REPORT] (quoting testimony of Mr. Geithner on May 6, 2010), available at http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO- FCIC.pdf, archived at http://perma.cc/XVK2-L8FG. 5. Yvette D. Kantrow & Liz Moyer, Citi, Travelers: A Global Leader Takes Shape, AM. BANKER, Apr. 7, 1998, at 1, available at http://www.americanbanker.com/175/citi-travelers-a- global-leader-takes-shape-1041890-1.html, archived at http://perma.cc/U3PW-WDK2; Michael Siconolfi, Big Umbrella: Travelers and Citicorp Agree to Join Forces in $83 Billion Merger, WALL ST. J., Apr. 7, 1998, at A1. 6. Steven Lipin & Stephen E. Frank, The Big Umbrella: Travelers/Citicorp Merger—One- Stop Shopping Is the Reason for Deal, WALL ST. J., Apr. 7, 1998, at C14. 7. Siconolfi, supra note 5 (reporting that Citicorp CEO John Reed and Travelers CEO Sandy Weill “are betting that the broad services of the huge new firm could weather any future market swoons”). 8. Timothy L. O’Brien & Joseph B. Treaster, A $70 Billion Pact, N.Y. TIMES, Apr. 7, 1998, at A1. 9. Kantrow & Moyer, supra note 5 (quoting Mr. Weill). 10. Bradley Keoun, Citigroup Board Says Pandit Deserved Bonus for 2009 ‘Progress,’ BLOOMBERG.COM, Mar. 1, 2010, http://www.bloomberg.com/apps/news?pid=newsarchive&sid= aKWvUvCwZng0, archived at http://perma.cc/L8JT-VGDG (reporting that Citigroup incurred a net loss of $27.7 billion during 2008 and a further net loss of $1.6 billion during 2009). 11. Brian Collins & Terry Peters, Citi Takes Huge Hit, NAT’L MORTGAGE NEWS, Jan. 21, 2008, at 1 (reporting that Citigroup incurred a net loss of $9.8 billion during the fourth quarter of 2007). 2014] CITIGROUP: A CASE STUDY 71 of that strategy, the bank recorded more than $130 billion of write-downs on its loans and investments from the second half of 2007 through the end of 2009.12 In order to prevent Citigroup’s failure, the federal government injected $45 billion of new capital into the bank and provided the bank with $500 billion of additional help in the form of asset guarantees, debt guarantees, and liquidity assistance.13 The federal government provided more financial assistance to Citigroup than to any other bank during the financial crisis.14 This Article describes Citigroup’s rapid growth and sudden collapse during the decade following its creation. As explained below, Citigroup’s managers and regulators repeatedly failed to prevent or respond effectively to legal violations, conflicts of interest, excessive risk-taking, and inadequate risk controls within the bank’s complex, sprawling operations. Those repeated failures reflected a broader mindset—both on Wall Street and in Washington—that placed great faith in the ability of financial institutions and markets to discipline themselves while disdaining government regulation as misguided and counterproductive. Citigroup was an arbitrage vehicle at its inception, because its founders (assisted by friendly government officials) exploited a statutory loophole to place great pressure on Congress to repeal the Glass-Steagall Act of 1933 and authorize universal banking.15 Citigroup’s key corporate predecessors—Citicorp and Salomon Brothers—had high-risk cultures, and both institutions flirted with failure during the decade preceding Citigroup’s formation.16 From 2000 to 2004, Citigroup was embroiled in a series of high-profile scandals, including tainted transactions with Enron and WorldCom, biased research advice, corrupt allocations of shares in initial public offerings (IPOs), predatory subprime lending, and market manipulation in foreign bond markets.17 In 2005, Citigroup’s bank regulators—the Federal Reserve Board (FRB) and the Office of the Comptroller of the Currency (OCC)—imposed a moratorium on further large acquisitions until Citigroup improved its corporate compliance and risk management procedures.18 That temporary moratorium appears to have been the only meaningful constraint imposed by regulators before Citigroup collapsed at the end of 2008.19 12. See infra Part II. 13. See infra Part II.B. 14. See infra Part II.B; YALMAN ONARAN, ZOMBIE BANKS: HOW BROKEN BANKS AND DEBTOR NATIONS ARE CRIPPLING THE GLOBAL ECONOMY 83-87, 92-93 (1st ed. 2011) (explaining that Citigroup and Bank of America received the largest amounts of financial assistance from the federal government). 15. See infra Part I.A. 16. See infra Part I.A. 17. See infra Part I.B. 18. Citigroup Inc., Federal Reserve System (Mar. 16, 2005) (order), at 11 [hereinafter FRB Citigroup-FAB Order] (imposing moratorium as a condition to FRB’s approval of Citigroup’s acquisition of First American Bank in March, 2005), available at http://www.federalreserve.gov/ boarddocs/press/orders/2005/20050316/attachment.pdf, archived at http://perma.cc/N2RZ-YBLV.
Load more

Recommended publications
  • Download Pdf 707.34 KB
    NOT FOR DISTRIBUTION IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN THE UNITED STATES, ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OR THE DISTRICT OF COLUMBIA (INCLUDING PUERTO RICO, THE U.S. VIRGIN ISLANDS, GUAM, AMERICAN SAMOA, WAKE ISLAND AND THE NORTHERN MARIANA ISLANDS) OR IN OR INTO OR TO ANY PERSON LOCATED OR RESIDENT IN ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS DOCUMENT. EXOR N.V. ANNOUNCES FINAL RESULTS OF ITS TENDER OFFERS Amsterdam, 20 January 2021. EXOR N.V. (the Company) hereby announces the final results of its invitations to eligible Noteholders of its €750,000,000 2.125 per cent. Notes due 2 December 2022, ISIN XS1329671132 (of which €750,000,000 is currently outstanding) (the 2022 Notes) and its €650,000,000 2.50 per cent. Notes due 8 October 2024, ISIN XS1119021357 (of which €650,000,000 is currently outstanding) (the 2024 Notes, and together with the 2022 Notes, the Notes and each a Series) to tender their Notes for purchase by the Company for cash up to an aggregate maximum acceptance amount of €400,000,000 in aggregate nominal amount (the Maximum Acceptance Amount) (such invitations, the Offers and each an Offer). The Offers were announced on 12 January 2021 and were made on the terms and subject to the conditions set out in the tender offer memorandum dated 12 January 2021 (the Tender Offer Memorandum) prepared in connection with the Offers, and subject to the offer and distribution restrictions set out in the Tender Offer Memorandum.
    [Show full text]
  • From the American Dream to … Bailout America: How the Government
    From the American dream to … bailout America: How the government loosened credit standards and led to the mortgage meltdown Compiled by Edward Pinto, American Enterprise Institute In the early 1990s, Fannie Mae‘s CEO Jim Johnson developed a plan to protect Fannie‘s lucrative charter privileges bestowed by Congress. Ply Congress with copious amounts of affordable housing and Fannie‘s privileges would be secure. It required ―transforming the housing finance system‖ by drastically loosening of loan underwriting standards. Fannie garnered support from community advocacy groups like ACORN and members of Congress. In 1995 President Clinton formalized Fannie‘s plan into the National Homeownership Strategy. President Clinton stated it ―will not cost the taxpayers one extra cent.‖ From 1992 onward, ―skin in the game‖ was progressively eliminated from housing finance. And it worked – Fannie‘s supporters in and outside Congress successfully protected Fannie‘s (and Freddie‘s) charter privileges against all comers – until the American Dream became Bailout America. TIMELINE Credit loosening Warning 1991 HUD Commission complains ―Fannie Mae and Freddie Mac‘s underwriting standards are oriented towards ‗plain vanilla‘ mortgage‖ [Read More] 1991 Lenders will respond to the most conservative standards unless [Fannie Mae and Freddie Mac] are aggressive and convincing in their efforts to expand historically narrow underwriting [Read More] 1992 Countrywide and Fannie Mae join forces to originate ―flexibly underwritten loans‖ [Read More] 1992 Congress passes
    [Show full text]
  • Housing Finance Reform: Addressing a Growing Divide
    08 Housing finance reform: Addressing a growing divide Barclays examines how United States housing finance policies affect homeownership rates, finding that affordability targets can provide an effective counterbalance to rising income inequality. 2 Foreword More than a decade after the mortgage-focused government- sponsored enterprises (GSEs) Fannie Mae and Freddie Mac were placed under conservatorship during the 2008 Financial Crisis, the debate about the appropriate role of the government in the housing market continues. 13 October 2020 Despite a raft of housing policies including subsidies, taxes We draw several lessons from these results. First, the and mortgage guarantees, the US has similar homeownership government can positively influence housing outcomes. levels to other developed countries that do not offer such Second, the distinct effect of the GSE affordability targets support. Critics of the current policies cite this as evidence suggests that other forms of support, such as the FHA, may that government intervention accomplishes little except create not be sufficient for low income and minority borrowers in distortions in the housing market, and argue for a sharply their current form. reduced role for government going forward. From a housing policy perspective, this does not translate Yet an important structural difference between the US and into support for the status quo. Many interventions in the other developed economies is the high, and rising, level housing market should be reviewed and may be unnecessary, of income inequality in the US. Our analysis indicates that and we cannot ignore the lessons from the financial crisis rising inequality exerts significant downwards pressure and resulting bailouts.
    [Show full text]
  • The Federal Reserve's Catch-22: 1 a Legal Analysis of the Federal Reserve's Emergency Powers
    ~ UNC Jill SCHOOL OF LAW *'/(! 4 --/! ,.%'! " ! ! " *''*1.$%-) %.%*)'1*,&-. $6+-$*',-$%+'1/)! /)% ,.*".$! )&%)#) %))!1*((*)- !*((!) ! %..%*) 5*(-*,.!, 7;:9;8;<= 0%''!. $6+-$*',-$%+'1/)! /)%0*' %-- 5%-*.!%-,*/#$..*2*/"*,",!!) *+!)!--2,*'%)1$*',-$%+!+*-%.*,2.$-!!)!+.! "*,%)'/-%*)%)*,.$,*'%) )&%)#)-.%./.!2)/.$*,%3! ! %.*,*",*'%)1$*',-$%+!+*-%.*,2*,(*,!%)"*,(.%*)+'!-!*).. '1,!+*-%.*,2/)! / The Federal Reserve's Catch-22: 1 A Legal Analysis of the Federal Reserve's Emergency Powers I. INTRODUCTION The federal government's role in the buyout of The Bear Stearns Companies (Bear) by JPMorgan Chase (JPMorgan) will be of lasting significance because it shaped a pivotal moment in the most threatening financial crisis since The Great Depression.2 On March 13, 2008, Bear informed "the Federal Reserve and other government agencies that its liquidity position had significantly deteriorated, and it would have to file for bankruptcy the next day unless alternative sources of funds became available."3 The potential impact of Bear's insolvency to the global financial system4 persuaded officials at the Federal Reserve (the Fed) and the United States Department of the Treasury (Treasury) to take unprecedented regulatory action.5 The response immediately 1. JOSEPH HELLER, CATCH-22 (Laurel 1989). 2. See Turmoil in the Financial Markets: Testimony Before the H. Oversight and Government Reform Comm., llO'h Cong. -- (2008) [hereinafter Greenspan Testimony] (statement of Dr. Alan Greenspan, former Chairman, Federal Reserve Board of Governors) ("We are in the midst of a once-in-a century credit tsunami."); Niall Ferguson, Wall Street Lays Another Egg, VANITY FAIR, Dec. 2008, at 190, available at http://www.vanityfair.com/politics/features/2008/12/banks200812 ("[B]eginning in the summer of 2007, [the global economy] began to self-destruct in what the International Monetary Fund soon acknowledged to be 'the largest financial shock since the Great Depression."'); Jeff Zeleny and Edmund L.
    [Show full text]
  • Third Supplemental Information Memorandum Dated 23 July 2019
    Third Supplemental Information Memorandum dated 23 July 2019 LVMH FINANCE BELGIQUE SA (incorporated as société anonyme / naamloze vennootschap) under the laws of Belgium, with enterprise number 0897.212.188 RPR/RPM (Brussels)) EUR 4,000,000,000 Belgian Multi-currency Short-Term Treasury Notes Programme Irrevocably and unconditionally guaranteed by LVMH Moët Hennessy - Louis Vuitton SE (incorporated as European company under the laws of France, and registered under number 775 670 417 (R.C.S. Paris)) The Programme is rated A-1 by Standard & Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. and, Arranger Dealers Banque Fédérative du Crédit Mutuel BNP Paribas BRED Banque Populaire Crédit Agricole Corporate and Investment Bank Crédit Industriel et Commercial BNP Paribas Fortis SA/NV Natixis Société Générale ING Belgium SA/NV ING Bank N.V. Belgian Branch Issuing and Paying Agent BNP Paribas Fortis SA/NV This third supplemental information memorandum is dated 23 July 2019 (the “Third Supplemental Information Memorandum”) and is supplemental to, and shall be read in conjunction with, the information memorandum dated 20 October 2015 as supplemented on 21 April 2016 and on 28 April 2017 (the “Information Memorandum”). Unless otherwise defined herein, terms defined in the Information Memorandum have the same respective meanings when used in this Third Supplemental Information Memorandum. As of the date of this Third Supplemental Information Memorandum: (i) The Issuer herby makes the following additional disclosure: Moody's assigned on 3 July 2019 a first-time A1 long-term issuer rating and Prime-1 (P-1) short-term rating to LVMH Moët Hennessy Louis Vuitton SE.; (ii) The paragraph 1.17 “Rating(s) of the Programme” of the section entitled “1.
    [Show full text]
  • Value, Caution and Accountability in an Era of Large Banks and Complex Finance*
    2011-2012 BETTING BIG 765 BETTING BIG: VALUE, CAUTION AND ACCOUNTABILITY IN AN ERA OF LARGE BANKS AND COMPLEX FINANCE* LAWRENCE G. BAXTER** Abstract Big banks are controversial. Their supporters maintain that they offer products, services and infrastructure that smaller banks simply cannot match and enjoy unprecedented economies of scale and scope. Detractors worry about the risks generated by big banks, their threats to financial stability, and the way they externalize costs of operation to the public. This article explains why there is no conclusive argument one way or the other and why simple measures for restricting the danger of big banks are neither plausible nor effective. The complex ecology of modern finance and the management and regulatory challenges generated by ultra-large banking, however, cast serious doubt on the proposition that the benefits of big banking outweigh its risks. Consequently, two general principles are proposed for further consideration. First, big banks should bear a greater degree of public accountability by reforming certain principles of corporate governance to require greater representation of public interests at the board and executive levels of big banks. Second, given the unproven promises of performance by big banks, their unimpressive actual record of performance, and the many hazards they inevitably generate or encounter, financial regulators should consciously adopt a strict cautionary approach. Under this approach, big banks would bear a very heavy onus to demonstrate in concrete terms that their continued growth – and even the maintenance of their current scale – can be adequately managed and supervised. * © Lawrence G. Baxter. ** Professor of the Practice of Law, Duke Law School.
    [Show full text]
  • Of Community Banking: the Continued Importance of Local Institutions Bob Solomon UC Irvine School of Law
    UC Irvine Law Review Volume 2 Issue 3 Business Law as Public Interest Law / Article 8 Searching for Equality: A Conference on Law, Race, and Socio-Economic Class 12-2012 The alF l (and Rise?) of Community Banking: The Continued Importance of Local Institutions Bob Solomon UC Irvine School of Law Follow this and additional works at: https://scholarship.law.uci.edu/ucilr Part of the Banking and Finance Law Commons Recommended Citation Bob Solomon, The Fall (and Rise?) of Community Banking: The Continued Importance of Local Institutions, 2 U.C. Irvine L. Rev. 945 (2012). Available at: https://scholarship.law.uci.edu/ucilr/vol2/iss3/8 This Article and Essay is brought to you for free and open access by UCI Law Scholarly Commons. It has been accepted for inclusion in UC Irvine Law Review by an authorized editor of UCI Law Scholarly Commons. UCILR V2I3 Assembled v8 (Do Not Delete) 12/14/2012 5:35 PM The Fall (and Rise?) of Community Banking: The Continued Importance of Local Institutions Bob Solomon* Introduction ..................................................................................................................... 945 I. The Reality of Bank Concentration .......................................................................... 946 II. Four Principles ........................................................................................................... 950 III. ShoreBank—The Model for Community Development Banking ................... 955 IV. The Difficulties of Starting a De Novo Bank— The New Haven Experience ...........................................................................
    [Show full text]
  • China's 2020 Vision for Global Fund Managers
    Markets and Securities Services | China’s 2020 vision for global fund managers 1 CHINA’S 2020 VISION FOR GLOBAL FUND MANAGERS Around 25 years ago, the authorities in China began to develop their capital markets ambitions. Stock exchanges were opened in Shanghai and Shenzhen. Members of the general public were allowed to buy stocks and shares on the market, albeit their choices at the time were limited to mainly (former) State-Owned Enterprises (SOEs). Talks also began for allowing the creation of mutual funds and the setting-up of fund management companies. Few would have believed, at the time, that by In July 2019, it was announced that the date for 2019 China’s stock markets in aggregate would 100% foreign ownership of fund management become one of the top-three largest in the companies would be brought forward to world by size and the largest by trading volume. sometime in 2020, and in October 2019 it was The aggregate scale of the assets managed in confirmed this would apply from April 2020. mutual funds, wealth management products and These announcements confirmed that non- other schemes made available to citizens now Chinese firms could own 100% of a Mainland exceeds approximately USD20 trillion. Chinese fund management company, allowing unrestricted access to offer investment services There’s a fantastic success story to be told. Yet and products to the retail market. for the most part, many of the top prizes to date have been reserved for domestic businesses in During the last three years, Chinese regulators China. Foreign firms, i.e.
    [Show full text]
  • 2007 Proxy Voting Report 3M Company Ticker Security ID: MMM
    2007 Proxy Voting Report 3M Company Ticker Security ID: Meeting Date Meeting Status MMM CUSIP9 88579Y101 05/08/2007 Voted Issue Mgmt For/Agnst No. Description Proponent Rec Vote Cast Mgmt 1.1 Elect Linda Alvarado Mgmt For For For 1.2 Elect George Buckley Mgmt For For For 1.3 Elect Vance Coffman Mgmt For For For 1.4 Elect Michael Eskew Mgmt For For For 1.5 Elect W. James Farrell Mgmt For For For 1.6 Elect Herbert Henkel Mgmt For For For 1.7 Elect Edward Liddy Mgmt For For For 1.8 Elect Robert Morrison Mgmt For For For 1.9 Elect Aulana Peters Mgmt For For For 1.10 Elect Rozanne Ridgway Mgmt For For For 2 Ratification of Auditor Mgmt For For For Amendment to Eliminate Supermajority 3 Voting Requirements Mgmt For For For Amendment to Eliminate Fair-Price 4 Provision Mgmt For For For 5 Executive Annual Incentive Plan Mgmt For For For Approve Material Terms of 6 Performance Unit Plan Mgmt For For For Shareholder Proposal Regarding Pay- 7 for-Superior-Performance ShrHoldr Against Against For Abbott Laboratories Inc Ticker Security ID: Meeting Date Meeting Status ABT CUSIP9 002824100 04/27/2007 Voted Issue Mgmt For/Agnst No. Description Proponent Rec Vote Cast Mgmt 1.1 Elect Roxanne Austin Mgmt For For For 1.2 Elect William Daley Mgmt For For For 1.3 Elect W. James Farrell Mgmt For For For 1.4 Elect H. Laurance Fuller Mgmt For For For 1.5 Elect Richard Gonzalez Mgmt For For For 1.6 Elect David Owen Mgmt For For For 1.7 Elect Boone Powell, Jr.
    [Show full text]
  • Notes and Sources for Evil Geniuses: the Unmaking of America: a Recent History
    Notes and Sources for Evil Geniuses: The Unmaking of America: A Recent History Introduction xiv “If infectious greed is the virus” Kurt Andersen, “City of Schemes,” The New York Times, Oct. 6, 2002. xvi “run of pedal-to-the-medal hypercapitalism” Kurt Andersen, “American Roulette,” New York, December 22, 2006. xx “People of the same trade” Adam Smith, The Wealth of Nations, ed. Andrew Skinner, 1776 (London: Penguin, 1999) Book I, Chapter X. Chapter 1 4 “The discovery of America offered” Alexis de Tocqueville, Democracy In America, trans. Arthur Goldhammer (New York: Library of America, 2012), Book One, Introductory Chapter. 4 “A new science of politics” Tocqueville, Democracy In America, Book One, Introductory Chapter. 4 “The inhabitants of the United States” Tocqueville, Democracy In America, Book One, Chapter XVIII. 5 “there was virtually no economic growth” Robert J Gordon. “Is US economic growth over? Faltering innovation confronts the six headwinds.” Policy Insight No. 63. Centre for Economic Policy Research, September, 2012. --Thomas Piketty, “World Growth from the Antiquity (growth rate per period),” Quandl. 6 each citizen’s share of the economy Richard H. Steckel, “A History of the Standard of Living in the United States,” in EH.net (Economic History Association, 2020). --Andrew McAfee and Erik Brynjolfsson, The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (New York: W.W. Norton, 2016), p. 98. 6 “Constant revolutionizing of production” Friedrich Engels and Karl Marx, Manifesto of the Communist Party (Moscow: Progress Publishers, 1969), Chapter I. 7 from the early 1840s to 1860 Tomas Nonnenmacher, “History of the U.S.
    [Show full text]
  • Banking Type Feature Summary
    Banking Type Feature Summary Citi Plus Citibanking Citi Priority Citigold Citigold Private Client Local Clients Relationship Balance No minimum balance No minimum balance To maintain the “Average Daily To maintain the “Average Daily To maintain the “Average Daily Requirement requirements. requirements. Combined Balance”1 of Combined Balance”1 of Combined Balance”1 of HK$500,000 or above. HK$1,500,000 or above. HK$8,000,000 or above. Monthly Service Fee No monthly service fee. No monthly service fee. No monthly service fee. HK$300 applied if the “Average HK$300 applied if the “Average Daily Combined Balance” falls Daily Combined Balance” falls below HK$1,500,000 for 3 below HK$1,500,000 for 3 consecutive months2. consecutive months2. International Personal Banking Clients3 Relationship Balance Not applicable to this banking Not applicable to this banking Not applicable to this banking To maintain the “Average Daily To maintain the “Average Daily Requirement type. type. type. Combined Balance”1 of Combined Balance”1 of HK$1,500,000 or above. HK$8,000,000 or above. Monthly Service Fee Not applicable to this banking HK$400 applied to all clients, HK$400 applied to all clients, HK$500 applied if the “Average HK$500 applied if the “Average type. irrespective of the clients' irrespective of the clients' Daily Combined Balance” falls Daily Combined Balance” falls “Average Daily Combined “Average Daily Combined below HK$1,500,000 for 3 below HK$1,500,000 for 3 Balance”4. Balance”4. consecutive months2. consecutive months2. All Clients Account Features - Enjoy Citi Interest Booster5 - Integrated banking services - Integrated banking services - Integrated banking services - Integrated banking services (an interest-bearing checking include saving and checking include saving and checking include saving and checking include saving and checking account) that you can boost the services.
    [Show full text]
  • Citi Acquisition of Wachovia's Banking Operations
    Citi Acquisition of Wachovia’s Banking Operations September 29, 2008 Transaction Structure Transaction Citi acquires Wachovia’s retail bank, corporate and investment bank and private bank Details businesses – Citi pays $2.2 billion to Wachovia in Citi common stock – Citi assumes substantially all of Wachovia’s debt; preferred stock excluded – Wachovia remains a publicly-traded holding company consisting of its retail brokerage and asset management businesses Capital Citi expects to raise $10 billion in common equity from the public markets Citi issues preferred stock and warrants to FDIC with a fair value of $12 billion at closing, accounted for as GAAP equity with full Tier 1 and leverage ratio benefit Quarterly dividend reduced to $0.16 per share immediately Regulatory capital relief on substantially all of the $312 billion of loss protected assets Risk Mitigation Citi enters loss protection arrangement with the FDIC on $312 billion of loss protected assets; maximum potential Citi losses of $42 billion – Citi is responsible for the first $30 billion of losses, recorded at closing through purchase accounting – Citi is responsible for the next $12 billion of losses, up to a maximum of $4 billion per year for the next three years – FDIC is responsible for any additional losses – Citi issues preferred stock and warrants to FDIC with a fair value of $12 billion at closing Approvals FDIC approved; subject to formal Federal Reserve approval and Wachovia shareholder approval Closing Anticipated by December 31, 2008 1 Terms of Loss Protection
    [Show full text]