" NEW YORK, Nov. 4 -- Citigroup has installed former Treasury secretary Robert Rubin as chairman after the widely anticipated resignation of Charles Prince, the embattled chairman and chief executive who faced mounting criticism in the wake of a $6.5 billion write-down for the third quarter.
After an emergency board meeting Sunday, Citigroup, citing significant declines in the value of subprime-related securities in the past month, estimated that it would take additional write-downs of $8 billion to $11 billion." - Washington Post
How could this have happened? Just because the banks had tapped out America's middle class and started giving out subprime loans to people who had no ability to repay them. That seems like an ok business practice. I mean when they give out a $650,000 mortgage to an illegal immigrant making $18,000 a year. What could go wrong? Adios Citibank, Hola Bank of America.
No comments:
Post a Comment