[lbo-talk] Ron Suskind, Obama, Tim Geithner, Citigroup, and the Wall Street Occupation

[michael perelman]

Ron Susskind's new book Ron Susskind's new book describes how Obama
wanted to follow the Scandinavian approach to financial crashes by
shutting down the banks, wiping out shareholders, and bringing in new
management.  He charged Geithner with figuring out how to shut down
Citigroup.  Geithner preferred to ignore his boss's wishes.  An
earlier book, throws further light on the relationship between
Geithner and Citigroup, in which Geithner was offered the job of
running Citigroup.

Sorkin, Andrew Ross. 2009. Too Big to Fail: Inside the Battle to Save
Wall Street (Allen Lane Penguin Books, London).

61: According to his account of the Lehman crisis, Geithner had been
quietly approached in November 2007 by Weill and asked if he would be
interested in becoming boss of Citi, a move that could garner him
untold millions.  Geithner was certainly interested, pondering the
matter while on long walks round Larchmont with his dog, Adobe, but a
firm offer never materialized.   At that time the credit crisis was
really starting to bite, and the giant bank had just reported a record
loss.  "Weill had no executive function at Citi.  He wouldn't be the
one making that call if they were seriously interested in giving
Geithner the job" points out one banking analyst in commenting on the
story.  "How else can we interpret this but as a nice juicy carrot
being dangled in front of the President of the New York Fed by a bank
that was going to need Fed help in a big way."

-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com