Citi's Prince Shows Shame, Rubin Defiance

[bobbyw24]

Former Citigroup Officials Say They, and Regulators, Didn't See Risks; 'I'm Sorry' Three Times

WASHINGTON—Former Citigroup Inc. Chief Executive Charles Prince expressed shame and contrition during a three-hour grilling by a congressional panel scrutinizing the financial crisis. But Robert Rubin, the former U.S. Treasury secretary who led Citigroup's executive committee, defiantly defended his role in decisions that led to gigantic losses at the bank.

Thursday's hearing by the Financial Crisis Inquiry Commission broke the recent silence by the two men about their culpability for more than $58 billion in write-downs by Citigroup on assets tied to risky subprime mortgages and other financial instruments. Mr. Prince has said little about Citi's problems since resigning under pressure in November 2007, while Mr. Rubin has been mostly quiet since announcing his retirement early last year.


Mr. Rubin reiterated his previous defense that his role was peripheral to the New York company's main operations even though he was one of its highest-paid officials. He noted repeatedly during the testy hearing that he didn't want to hold the same kind of "significant operational responsibility" at Citigroup that he had as Treasury secretary or while working at Goldman Sachs Group Inc.

Even his lofty title at Citigroup didn't involve frequent meetings and "wasn't a substantive part of the decision-making process," Mr. Rubin told the panel.

In contrast, Mr. Prince departed from his prepared testimony by saying "I'm sorry" three times that the crisis had such a "devastating" impact on the economy, millions of Americans "lost their homes," and "our management team, starting with me," didn't foresee the "unprecedented market collapse."
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Still, Bill Thomas, a Republican former congressman from California who is vice chairman of the panel, which must produce a report on its findings by Dec. 15, compared the former CEO to "a lemming" because of his reluctance to rein in risk-taking as late as mid-2007.

http://online.wsj.com/article/SB10001424052702304198004575171712663412230.html

[llepard]

Former Citigroup Officials Say They, and Regulators, Didn't See Risks; 'I'm Sorry' Three Times

WASHINGTON—Former Citigroup Inc. Chief Executive Charles Prince expressed shame and contrition during a three-hour grilling by a congressional panel scrutinizing the financial crisis. But Robert Rubin, the former U.S. Treasury secretary who led Citigroup's executive committee, defiantly defended his role in decisions that led to gigantic losses at the bank.

Thursday's hearing by the Financial Crisis Inquiry Commission broke the recent silence by the two men about their culpability for more than $58 billion in write-downs by Citigroup on assets tied to risky subprime mortgages and other financial instruments. Mr. Prince has said little about Citi's problems since resigning under pressure in November 2007, while Mr. Rubin has been mostly quiet since announcing his retirement early last year.


Mr. Rubin reiterated his previous defense that his role was peripheral to the New York company's main operations even though he was one of its highest-paid officials. He noted repeatedly during the testy hearing that he didn't want to hold the same kind of "significant operational responsibility" at Citigroup that he had as Treasury secretary or while working at Goldman Sachs Group Inc.

Even his lofty title at Citigroup didn't involve frequent meetings and "wasn't a substantive part of the decision-making process," Mr. Rubin told the panel.

In contrast, Mr. Prince departed from his prepared testimony by saying "I'm sorry" three times that the crisis had such a "devastating" impact on the economy, millions of Americans "lost their homes," and "our management team, starting with me," didn't foresee the "unprecedented market collapse."
More



Still, Bill Thomas, a Republican former congressman from California who is vice chairman of the panel, which must produce a report on its findings by Dec. 15, compared the former CEO to "a lemming" because of his reluctance to rein in risk-taking as late as mid-2007.

http://online.wsj.com/article/SB10001424052702304198004575171712663412230.html

OK, so if he did not have significant responsiblity then why did he receive $100MM in compensation. For his good looks?

You can't have it both ways Bob. Either you have responsibility and you get paid. Or you have no responsiblity and you do not get paid. Otherwise it is called STEALING.

Give me a fucking break. This guy is pond scum. A real evil piece of shit.

He should return the money as should Prince. In exchange for staying out of jail.

At least Prince showed some remorse. Still not an excuse, but a start. The only thing these guys understand is money and power. That is why they both should be completely disgraced and stripped of both.


LL