EXCLUSIVE: The New York Fed Has Been Captured By Citigroup, Top Obama Official Complains

[girl gone mad]

EXCLUSIVE: The New York Fed Has Been Captured By Citigroup, Top Obama Official Complains
John Carney, http://www.businessinsider.com/exclusive-the-new-york-fed-has-been-captured-by-citigroup-top-obama-official-complains-2009-6">Clusterstock

The New York Fed cannot effectively regulate Citi because it has been captured by the mega-bank, according to a top economic official inside the Obama administration. The close relationship between Citi executives and officials at the New York Fed is stymieing efforts to reform the bank and change its management, according to the official.

The official asked not to be identified.

Citi executives have told Charlie Gasparino that they are in a "regulatory purgatory," unsure about what the government's plans for them have been. Recently, the Wall Street Journal reported that Sheila Bair's FDIC had been considering plans to oust senior management at the bank. Gasparino reported that Citi officials believe Bair herself leaked that story to the Journal in order to start the ball rolling.

Earlier, we mentioned reports that Tim Geithner was reportedly advocating keeping Citi chief executive Vikram Pandit in place. Neither Bair nor Geithner, however, are the primary regulator for Citi. That job falls to New York Fed.

http://www.businessinsider.com/exclusive-the-new-york-fed-has-been-captured-by-citigroup-top-obama-official-complains-2009-6

[aquart]

1. Citi is a criminal operation and always has been.

[pscot]

2. The entire federal regulatory apparatus

has been captured by the predators. They're being paid to rob us blind.

[sendero]

6. You're right..

.. until Americans stand up en mass saying no mas, this shit will go on forever.

What is happening right now will go down in history as the biggest scam ever perpetrated on a "free" people.

Free my ass. Free to pay taxes forever to bail out criminal bankers.

And Obama is right in the middle of it. This was a Republican mess, he's made it a Democratic mess. It's as unbelievable as it is unforgivable.

[CoffeeCat]

9. Do you believe that Obama...

...is a willing player who is perpetuating the mess and covering it up?

Or do you think he wandered into the Presidency, not knowing how bad it was? And is he now being
advised by players who orchestrated this whole thing?

[sendero]

10. I think..

.... he chose insiders to the IB community as his top advisors. It's no surprise that their agenda is to protect the banks, not the country.

The path they are taking is going to be a costly failure IMHO, because it relies on us getting back to "business as usual" i.e. more economic bubbles.

I think Obama is smart enough to know this so I conclude he is a puppet.

[Demeter]

3. And the Executive Has Been Captured by Goldman Sachs

So what's the point in worrying? We're just the ants at the picnic. Catch a few crumbs, if we don't get squashed.

[Celebration]

4. sounds like Bair is playing hardball

Definitely her agenda may be different from Geithner (understatement).

[slipslidingaway]

5. And Geithner was head of the NY Fed since 2003...the primary regulator?

[Raineyb]

7. Considering that Geithner didn't do squat while he was the head of the NY Fed

why would we expect that he was really interested in doing so now if he could.

He said it best when he was testifying in front of Congress. "I have never been a regulator."

That's probably the only thing on which I can agree with him.

Regards

[HamdenRice]

8. Yet another sensational subject line that contradicts the actual story

Takeaway from the actual story:

Citi executives have told Charlie Gasparino that they are in a "regulatory purgatory," unsure about what the government's plans for them have been. Recently, the Wall Street Journal reported that Sheila Bair's FDIC had been considering plans to oust senior management at the bank.

In other words, management of partly nationalized mega bank about to be fired by federal regulators.