Last month, we noted that former FDIC Chairman Sheila Bair had some choice words regarding Citigroup CEO Vikram Pandit in her new book, Bull By the Horns. After Citi said he was stepping down in a statement released today, Ms. Bair offered six more words to her assessment:
“This was a very positive move,” she said in an interview with Tom Keene and Ken Prewitt on Bloomberg Radio.
You can read her comments on Mr. Pandit from her book below.
If a person wanted to conceive a story to make increased financial regulation look stupid, he might dream up something like this:
In 1963, a 19-year-old college student put a cardboard cut-out of a dime in a laundry machine, was spotted by a local sheriff, convicted on fraud charges, sentenced to 15 days in jail. Nearly 50 years later, the ex-con, now a low-level bank employee, gets flagged by a background check mandated by a new federal regulations, loses his job.
Europe reckoned with Greek elections and the Spanish government took a controlling stake in the country’s third-largest lender. Phil Falcone kept cool at a hedge fund conference, despite turmoil facing LightSquared. Green Mountain founder Robert Stiller talked about the sale of company stock that led to his ouster as chairman. That and more, in this morning’s Wall Street roundup.
Europe simmers: European governments held back a part of rescue funds promised to Greece after weekend elections raised the specter that the country’s new governing coalition might shred an existing bailout agreement. As in, literally. With the Greek government unformed, and leftist Syriza coalition talking tough, the Journal reports that German and Finnish made a stink before agreeing to release $5.5 billion in bailout funds.
Spain said it would take over Bankia SA yesterday, converting $5.8 billion in preferred equity into voting shares, good enough to control a 45 percent stake in the nation’s third-largest lender. The country’s banking system is looking more and more like an Ireland-sized catastrophe, according to Bloomberg: While the government has ordered banks to post additional capital to cover losses on construction and property loans, the prescribed collateral-raise would leave nothing in the tank for trillions more in home loans and corporate debt.
Calm before: Storm clouds may gather over Phil Falcone, but when Dealbook went to see the Harbinger Capital founder speak at the SALT conference in Vegas, the hedge fund manager was the epitome of calm, or at least, he spoke thoughtfully and in mellifluous tones. On the other hand, no one asked about LightSquared.
Bad documents: The Florida Supreme Court will hear arguments today in a case that could undo hundreds of thousands of foreclosures, as the court decides whether banks that used fraudulent paperwork to file foreclosures can dismiss the suits and refile with new documents. Reuters has the story of how a 35-year-old drywall hanger initiated the case, and potential implications in Florida and across the country.
“I had breakfast with the mayor,” Treasury Secretary Tim Geithner said before beginning his speech this afternoon at NYU’s Stern School of Business. “I said, ‘How is New York?’ He said, ‘New York is strong.’ I said, ‘Why is that?’ He said, ‘Because we have a great mayor.’”
The crowd—business people, media people and NYU Read More
“De mortuis nihil nisi bonum …” “Of the dead speak aught but good.”
The ancient admonition seems the only way to hedge the reflection that as bad as Citi’s problems are, how much worse might they have been had Walter Wriston still been running the bank. It was the late Citibank CEO Read More
It’s not easy transforming the demonized landlords who homogenized New York City streets with a seemingly endless supply of storefront banks into sympathetic victims. But the federal government, rarely the achiever of the impossible, has done just that.
Here’s how. As The Observer reported last month, the F.D.I.C.’s October agreement with JPMorgan Chase and Read More
The FDIC, which has in recent months unexpectedly found itself awash in real estate assets (but not in real estate expertise), has hired CB Richard Ellis as its primary real estate adviser, according to a release sent out this morning.
CB Richard Ellis will handle all of the FDIC’s real estate assets nationwide (including Read More