It turns out that the executives at Citigroup didn't want to say anything about their risky mortgage related loans because executives and managers were making too much money in fees and bonuses. This is from the NY Times.
But many Citigroup insiders say the bank’s risk managers never investigated deeply enough. Because of longstanding ties that clouded their judgment, the very people charged with overseeing deal makers eager to increase short-term earnings — and executives’ multimillion-dollar bonuses — failed to rein them in, these insiders say.Keep in mind that these are people who make 6 figures or more every year.
Today, Citigroup is faced with $65 billion in losses, and will be experiencing additional write-downs and other charges for future losses. Because of executive mismanagement and stupid decision-making the company is currently worth just $20.5 billion, down from $244 billion two years ago. About 75,000 jobs are gone or set to disappear.
Obama's plan to increase taxes on those making $250,000 or more per year can't come soon enough. These idiots don't deserve what they "earned".
- Mark
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