President Obama: Force Citibank Into Bankruptcy

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The United States has bailed out Citibank once too often. Next time the Chinese, Japanese and Saudis may not bail out America. Then where shall we go with our tin cups?

[Policing Wall Street]

Citibank can learn an important lesson from GM. 

GM is bankrupt and Citibank is bankrupt.

The only difference is Citi is kept afloat by perpetual loans from the Treasury. 

It is readily apparent that Steven Rattner, President Obama’s point man on reforming the auto industry, thankfully had little to do with the breakup of GM.  Otherwise, Rattner would do to GM what he did with The New York Times- ruin the company with bad advice. He might have prevented GM from filing for bankruptcy.

GM declared bankruptcy- a plan that The Black Star News has said was inevitable.  (Please see my Feb. 22, 2009 column “Let G.M. Declare Bankruptcy” http://www.blackstarnews.com/news/135/ARTICLE/5428/2009-02-22.html)
GM sold:

[] Hummer to Sichuan Tengzhong Heavy Industrial Machinery Company
[] Saturn to the Penske Automotive Group
[] Opel to Magna International
[] Most recently Saab to Koenigsegg Automotive

Unfortunately, the American taxpayer will own a substantial part of GM- but
that was inevitable. So why can’t the same be done to Citibank? Vikram Pandit, CEO of Citibank should be fired and Citibank should then be broken up.

We boldly suggest that President Obama order that Citibank be guided into bankruptcy.

First National City, the precursor of Citibank, can be the name of the federally chartered bank that arises.  Then the investment banking part should be sold off or dismantled; it is a miserable failure anyway.

As for Citibank's international division, it can finance small import-export businesses. That is all. 

The old Smith Barney-Salomon customer business can be sold off to a Japanese bank. Maybe Nomura or Bank of Tokyo would be interested. Furthermore, all money laundering of Citibank's international Divisions must stop.

Those branch offices in the Caribbean and other money laundering waterholes are not there for billionaires looking for deep sea fishing. For years the American Treasury has permitted Citibank to launder money and violate federal securities laws. 

With Citibank under the control of the government, Citibank should be micro-sized for its mismanagement.  The United States has bailed out Citibank once too often.

Next time the Chinese, Japanese and Saudis may not bail out America.

Then where shall we go with our tin cups?

 

Please post your comments directly online or submit them to milton@blackstarnews.com for publication

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