One Rip-off, Two Villains
2011-10-20 - by
Here’s an unusual experiment in ethics: Is Citibank guilty or innocent of bilking investors by selling home mortgage bond packages? The answer, the bank says, is neither. It’s neither innocent nor guilty. In fact, it’s neutral on the issue. But, the bank adds, it will pay a $285 million fine to put the past behind it, and so it can continue to work to ‘help with the economic recovery.’
Of course, the fine is bad news for Citibank’s stockholders – who’re $285 million poorer this morning. But it’s good news for Citibank CEOs and executives who get to keep their profits and bonuses from selling the tainted bonds.
There was also a story in the newspaper this morning about whether the Tea Party and Occupy Wall Street are shaping up to be arch-political enemies or two new tribes of populists roaring down parallel tracks.
Citibank’s escape from the Washington regulations may provide a hint of an answer.
The way the Occupy Wall Street protestors see it the clever CEOs lied, skizzled, stuck stockholders with the bill and waltzed away with millions in their pockets.
The way the Tea Partiers see it the CEOs paid off the corrupt Washington politicians in advance with campaign contributions so the politicians would pass laws that made it legal to lie, skizzle, stick stockholders with the bill and walk away with millions.
Could this turn out to be one rip-off – with two villains?
One Rip-off, Two Villains
2011-10-20/
Here’s an unusual experiment in ethics: Is Citibank guilty or innocent of bilking investors by selling home mortgage bond packages? The answer, the bank says, is neither. It’s neither innocent nor guilty. In fact, it’s neutral on the issue. But, the bank adds, it will pay a $285 million fine to put the past behind it, and so it can continue to work to ‘help with the economic recovery.’
Of course, the fine is bad news for Citibank’s stockholders – who’re $285 million poorer this morning. But it’s good news for Citibank CEOs and executives who get to keep their profits and bonuses from selling the tainted bonds.
There was also a story in the newspaper this morning about whether the Tea Party and Occupy Wall Street are shaping up to be arch-political enemies or two new tribes of populists roaring down parallel tracks.
Citibank’s escape from the Washington regulations may provide a hint of an answer.
The way the Occupy Wall Street protestors see it the clever CEOs lied, skizzled, stuck stockholders with the bill and waltzed away with millions in their pockets.
The way the Tea Partiers see it the CEOs paid off the corrupt Washington politicians in advance with campaign contributions so the politicians would pass laws that made it legal to lie, skizzle, stick stockholders with the bill and walk away with millions.
Could this turn out to be one rip-off – with two villains?