Wednesday, November 11, 2009

Citigroup -- Too Big or Just Wrong Risk

Citigroup (C) now has incredibly senior but retired officers saying I’m sorry I did it. Probably not returning any compensation but they are sorry. Everyone seems to be jumping on the too big to fail is too big to exist bandwagon. But consider this. Financial institutions are the aircraft carriers of your economy. If America wants to maintain economic dominance they cannot afford to have small puny aircraft carriers. Other countries will aid and abet their financial institutions and give them the size and therefore the clout to dominate.

It’s not a size issue it’s a risk issue.