Posted on 02/08/2002 2:08:48 AM PST by JohnHuang2
What did Citigroup know in August 2000, and when they they know it?
Does Citigroup hedge all their loans?
Now those investors are left to fight for repayment in bankruptcy proceedings.
It looks like the investors gets scammed a second time because of Enron.
Already is..outside the beltway, people aren't getting all worked up about Enron. They're sick and tired of hearing about, actually.
A footnote, indeed.
I can't remember if I read this correctly a couple of weeks ago, but didn't Mr. Rubin call an administration official regarding Enron before it's collapse?
ssshhhhhhhh! Yes, but you're not supposed to mention that....;^)
Mr. Fisher, understanding that no funny business is allowed under O'Neill, and wanting to keep his job, sent Mr. Rubin packing. He then informed Mr. O'Neill about the call.
When you read that Bloomberg puff piece about Rubin, there is some very interesting information buried within it. I am MOST interested in these securities that Citigroup issued. WHY would they do this? I have no knowledge that this has ever been done before. An interesting thing will be if someone did this type of structuring of securities with Global Crossing, and if the author of said structuring also has a Clinton connection.
This is a now-familiar formulation, but I question it. These 'loyal employees' were every bit as interested in the 'quick buck' of the 'run-up stock' as the executives. It is now well established that only 11% of the Enron stock held by the 'loyal employees' in their respective 401(k)'s was locked in. The balance was held as a speculation.
What was wrong at Enron -- and indeed is endemic in American business -- is a fixation on the short-term. It is clear that all the executives were making far more -- and were intent on doing so -- from the stock market than from their respective salaries and bonuses.
And I believe these 'loyal employees' shared the executives' interest in finding the 'new sucker' to take their stock positions at every higher (and hyped) prices and shared it with the same rabidity. Did they know how the executives were cooking the books? Most probably did not. Would they have cared as long as it made paper millionaires out of secretaries? Absolutely not. They were infected with the same bug.
The same index funds available to the rest of us to diversity our risks in the market were available to them. The bought the stock speculation ticket and now they get to ride the train. I hope they enjoy the ride. But I don't feel sorry for them. They were every bit as greedy as Skilling, Lay and the others.
Hopefully, that faint rustling sound you hear is thousands and tens of thousands of other such speculators diversifying their portfolios even as we speak.
Isn't August 2000 right after Bob Rubin joined Citigroup? And doesn't that bloomberg puff piece says that Rubin's chief function in Citigroup is to point out risks to Sandy Weill?
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