Friday, February 27, 2009

U.S. to control up to 36% of Citi

Citigroup will be receiving more help from the government in a move designed to provide more security to holdings of the company. It does make me feel a bit more safe in terms of the company's future because the government is essentially making itself a major stakeholder, which indicates that it does not plan on letting the company fail anytime soon. I like the fact that many members of the Board will no longer be able to retain their positions, but I would have liked the Treasury to have applied more pressure to the company CEO and Board Chairman. The Treasury should take more of a leadership role in the company and work on reducing some of the troubled assets the company owns.

1 comment:

Charlie Ruff said...

How should the Treasury take more of a leadership role in Citi?

Right now we need government assurance that banks will not fail. We do not need governments to run the banks, that is called nationalization.