Thursday, May 22, 2008

Today's Irony

Was I the only one who found irony in this report detailing Citiigroup's "payoff", "bailout" or what have you, to investors in one of its hedge funds?? Oh how we in America used to laugh triumphally at poor Yamaichi's or Nikko's fumbled attempts to "pay back" their valued clients who'd been burned by this zaitech idea or that failed trading idea. Ahhh yes, in the good old days, brokers would routinely sell a block of shares to "he who needed to be repaired", run-up the price of the shares, and then buy them back at the higher price, settling their obligation. I wonder what Citigroup is calling their restitution? Just another mileage marker on the highway of moral hazard...

1 comment:

truth said...

Citi-and wall street simply can not be trusted.

"last roman CDO shows Enron accounting"

thank god bloomberg is still doing good journalism, compared to the all is well, buy all the time kool aid drinking pumpers on cnbc.