Fed Bars Citigroup From New Acquisitions

[Career Prole]

WASHINGTON - The Federal Reserve has barred Citigroup Inc., the largest U.S. financial institution, from making major new acquisitions until it corrects regulatory problems that have gotten it into trouble with authorities in several countries.

The unusual move by the central bank came less than a month after Citigroup, stung by a series of scandals in the United States and abroad, put into effect a new ethics policy and a drive to strengthen internal controls and expand training throughout the globe-spanning company.

The directive issued by the Fed's board of governors Wednesday was tucked into an order approving Citigroup's acquisition of First American Bank of Bryan, Texas, so that it initially escaped public notice.

<snip>

The Fed governors believe it is important "that management's attention not be diverted from these efforts by the demand that mergers and acquisitions place on management resources," it said.

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050318/ap_on_bi_ge/fed_citigroup

Almost seems "unethical" of the Fed to tuck that order away in hopes the public won't see it, IMO.

Of course, for Citigroup the order won't bar the further acquisition of the financial futures of naive young people who view their unsolicited credit card offers as "easy money". Those will be allowed to continue unabated.

[Melodybe]

1. HMMM Citigroup owned by the Saudis, the AOL/Time/Warner empire

owned by the Saudi's, I wonder why we haven't heard too much about this in the CMC.

I wonder if Americans know that the majority of their debt, (credit cards, etc) is owned by the Saudis?

Rhetorical question I know, I just wish they knew.

[Name removed]

2. Deleted message

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[derby378]

3. And another Citigroup rep gets tombstoned...

[Anakin Skywalker]

7. Bye Bye, You Stupid Corporatist Stooge!

[Wilms]

4. The Saudi's, eh? Did not know that.

Robert Rubin, Secretary of the Treasury under Clinton is a CitiCorp guy.

What a small world.

What else am I going to find? :grr:

[Melodybe]

5. According to Forbes Magazine they own 20%

"In May Citigroup sold its 20% stake to the Saudi government for a $760 million aftertax gain."

I got this from an article at forbes.com

[Anakin Skywalker]

6. About Damn Time. Damn Monopolists.

Yes, you little Rethugs (who are lurking), you worship Darwinism more than you know.