Tuesday, June 9, 2009

Citigroup Has Captured the New York Fed

John Carney is out with an exclusive reporting that Citigroup can't be controlled because, well, they are in control. Writes Carney:

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.
Not, of course, that the government should be micro-managing banks, but the point here is that if you are connected you have immunity from regulation, if you are not connected you have to deal with regulatory nonsense.

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