Posted on October 30, 2011 with 31 notes.
Tagged with Citigroup, Citibank, Wall Street, ROBBER BARONS, corruption, Tea, Tea Fragger, .

Citigroup had to pay a $285 million fine to settle a case in which, with  one hand, Citibank sold a package of toxic mortgage-backed securities  to unsuspecting customers — securities that it knew were likely to go  bust — and, with the other hand, shorted the same securities — that is,  bet millions of dollars that they would go bust.
It doesn’t get any more immoral than this. The SEC 2007 civil complaint noted, that Ctigroup exercised  “significant influence” over choosing $500 million of the $1 billion  worth of assets in the deal, and the global bank deliberately chose  collateralized debt obligations, or C.D.O.’s, built from mortgage loans  almost sure to fail.
“The deal became largely worthless within months of  its creation,” The Journal added. “As a result, about 15 hedge funds,  investment managers and other firms that invested in the deal lost  hundreds of millions of dollars, while Citigroup made $160 million in  fees and trading profits.”

Citigroup had to pay a $285 million fine to settle a case in which, with one hand, Citibank sold a package of toxic mortgage-backed securities to unsuspecting customers — securities that it knew were likely to go bust — and, with the other hand, shorted the same securities — that is, bet millions of dollars that they would go bust.

It doesn’t get any more immoral than this. The SEC 2007 civil complaint noted, that Ctigroup exercised “significant influence” over choosing $500 million of the $1 billion worth of assets in the deal, and the global bank deliberately chose collateralized debt obligations, or C.D.O.’s, built from mortgage loans almost sure to fail.

“The deal became largely worthless within months of its creation,” The Journal added. “As a result, about 15 hedge funds, investment managers and other firms that invested in the deal lost hundreds of millions of dollars, while Citigroup made $160 million in fees and trading profits.”

  1. teafraggerparty posted this