Sheila Bair, FDIC Doesn’t Equal Citi Bank

By: Alex Harris

The last time I checked, 36% meant exactly that: 36%.  36% is the percentage of Citi Bank that the U.S. government currently owns.  However, FDIC Chairwoman, Sheila Bair has recently decided that she can overlook our ownership stake, pretend she’s a majority share-holder and formally decide the fate of Citi Bank CEO, Vikram Pandit.

Sure, when Pandit was awarded the position of chief executive officer, Citi’s stock was valued at approximately $50.00 and it closed today at $3.42.  That’s (sadly enough) around a 94% drop.  But, at this point it’s clear that a majority of the problems transpiring within Citi’s walls weren’t caused by Pandit, but rather by an over-exposure to CDO’s and risky mortgage loans throughout the early 2000s.  As a result, the board of directors have lashed back at Bair by acknowledging the fact that they firmly support Pandit (for right now) and believe he should maintain his seat at the helm.

So, my message to Sheila Bair is: the FDIC (Federal Deposit Insurance Corporation) doesn’t equal Citi Bank.  In other words, this power-hungry leader needs to worry about something else, and let the Citi CEO’s fate be determined by the individuals within the company who actually understand the current situation in greater detail.  Granted, Bair did call the housing crisis before the speculative bubble bursted two years back, but I’m sorry, this is one situation in which I, and all of you should not agree with her judgement.

Beyond this fiasco, Larry Kudlow recently dedicated an entire episode of the Kudlow Report to the infiltration of czars into our government.  It’s become public knowledge (although no one seems to recognize the implications) that there are currently a total of 21 czars reporting to the president regarding issues surrounding the auto industry.  The Romanovs only had 18.  More than just strolling slowly down the road to socialism, it’s important to understand how hectic these czars will make dealing with pressing issues in an orderly manner.  21 people reporting to one person is never a good idea, unless they’re 21 nine year olds reporting to an elementary school teacher.

Now, we have the FDIC chairwoman attempting to determine the fate of Citi Bank, and a government with more czars than the Romanovs.

Thomas Jefferson is turning in his grave.