Yesterday during a telephone conversation, investment advisor Bill Smith of SAM Advisors pointed out to me the absurdity of the current Citigroup situation.
Since Citi is crashing, you would think that the board of Citi would spend extra time focusing on Citi to right the ship. Instead 20% of Citi's board is part of Barack Obama's transition team: Robert Rubin, Richard Parsons, Chairman of Time Warner Inc. and Anne Mulcahy, Chairman and CEO of Xerox Corporation.
Smith is also highly suspicious of what Rubin does to earn his $17 million per year. Rubin thinks the salary is a quid pro quo from Citi for Rubin's taking down the Glass Stegall Act, while he was Treasury Secretary.
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