Citigroup fine

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  • Tekakaromatagi Dammam, Saudi Arabia
    July 20, 2014 10:48 a.m.

    @The Real Maverick:
    "History has proven that companies will always prefer to get along with each other and gouge the customer rather than compete. Just ask Teddy Roosevelt."

    You say that like it is bad. If corporations aren't people, then why should we be expecting them to act morally. People are moral. Corporations exist to make money. In your view, they were acting like a good corporation, so then why the condemnation?

  • marxist Salt Lake City, UT
    July 19, 2014 10:01 p.m.

    RE: JimInSlC "Citigroup and the other Too Big to Fail banks should have been allowed to sink or swim,..." But there's the problem. If they had failed American capitalism would have failed. That would have been a good thing in that we would be rid of capitalism and its excesses once and for all, but would have been bad because of the adjustments we would have had to go through - I could take it but I wouldn't want to burden my children and grandchildren.

    Do you all understand what these banks are admitting to? Money laundering(!), overcharging customers, illegal conspiracies to set interest rates, manipulating the mortgage market, and wholesale deception of the public.

    These outfits should not be allowed to exist. Nationalize them!

  • one vote Salt Lake City, UT
    July 19, 2014 8:51 p.m.

    Are you saying private enterprise is out of control?

  • Mister J Salt Lake City, UT
    July 19, 2014 4:34 p.m.

    It amazes me that Citi has enough $ lying around to procure the naming rights to the NY Mets new stadium and pay a fine to the Gov't that helped precipitate this crisis, but...

    They can't/won't write off all the underwater loans and possibly stimulate the economy by giving many average people a bit more cash.

  • Pendergast Salt Lake City, UT
    July 19, 2014 4:27 p.m.

    re: The Real Maverick

    So? George Carlin was right. The system would clean itself up if we started punishing white, middle class bankers?

  • The Real Maverick Orem, UT
    July 19, 2014 1:50 p.m.

    @ Nate

    Yes, bad government policy is very much to blame.

    Why aren't we regulating these guys? Isn't someone supposed to keep watch?

    Why are they so big? If they aren't a monopoly I don't know what is. I thought we had anti-trust laws to prevent these types of monstrosities from forming?

    If banks are too big to fail, then we need to break them up and force them to compete against each other.

    History has proven that companies will always prefer to get along with each other and gouge the customer rather than compete. Just ask Teddy Roosevelt.

  • Nate Pleasant Grove, UT
    July 18, 2014 5:49 p.m.

    Citibank got taxpayer bailouts in 1995, 1997, 1998, and 2002. What message do you think they received about risky behavior leading up to 2008? I'm not saying they weren't wrong...just that bad government policy had its role to play as well.

  • LDS Liberal Farmington, UT
    July 18, 2014 12:59 p.m.

    Alpine, UT

    I'm one of the people who was "taken to the bank" by Citi.


    We lost $400,0000 due to Bank of America.

    I'd like to see someone in jail for it...

    $7 billion,
    $`3 Billion sound like a lot --

    But that earn $350 Billion in profits per year.

    It's basically like Banks robbing the Bank customers,
    The Federal Government "Bailing" them out,
    being found guilty in court and NOT going to jail,
    being allowed to keep everything they stole,
    only paying a parking ticket fine for it.

  • Atlas Smashed Santa Monica, CA
    July 18, 2014 11:35 a.m.

    Why isn't anyone going to jail?

    I thought corporations were people?

    So are they only people sometimes?

  • Blue Salt Lake City, UT
    July 18, 2014 10:40 a.m.

    $7 billion is chump-change to Citi, and they weren't even forced to admit to any wrongdoing.

    Until there's actual jail time - bankers doing a perp walk on their way out of a courthouse and on their way to prison - nothing will change and we'll all get hosed again.

  • Commodore West Jordan, UT
    July 18, 2014 10:05 a.m.

    A mere slap on the wrist for their bad behavior. This is not a victory for the working class and for those emotionally and financially damaged by the reckless behavior of this corporation.

  • a_voice_of_reason Woods Cross, UT
    July 18, 2014 9:41 a.m.


    A company that is "too big to fail" shouldn't be publicly owned. It should be prosecuted as a monopoly. Any company that is so big that it's failure would potentially destroy the economy needs to be dismantled as a monopoly. The article misses the point - a huge fine will cause them to reconsider overly-risky actions. Not even! So they're paying out $7 billion in fines - half of this year's much additional profit did they make prior to the recession from taking the big risks of making bad loans? The article itself does point out that the government loaned them $45 billion in the bailout. "Too big to fail" means a failure to properly use anti-trust laws and removes most of the downside from any risky ventures for these behemoth companies.

  • george of the jungle goshen, UT
    July 18, 2014 9:10 a.m.

    So no one is publicly humiliated any more.

  • Hutterite American Fork, UT
    July 18, 2014 8:24 a.m.

    Citigroup isn't a corporation. It's an individual and as such should be in jail.

  • CentralUtah Alpine, UT
    July 18, 2014 7:57 a.m.

    I'm one of the people who was "taken to the bank" by Citi.

    You try and get relief from them and they just say the settlement doesn't apply in your case. No one I know has received anything from them.

    Where does the money go? To law firms and kickbacks.

    One of the saddest aspects of our society is corrupt businesses settling with the government. No one knows where the money ends up…case in point, the $171 million settlement that Utah received two years ago in a deal brokered by Herbert and Shurtleff (not to the people who were injured to make them whole). When the corporations figured out how to avoid criminal liability and the feds agreeing to settlements, it opened the floodgates for the public to get cheated out of billions while companies paid millions in fines. This is truly a sad, sad time for the integrity of our country.

  • Mike Richards South Jordan, Utah
    July 18, 2014 7:43 a.m.

    Just who will be paying that $7 Billion fine levied on Citi and the $13 Billion fine levied on Bank of America? It will be you and me and all the other credit card holders of Citi and BofA credit cards. We will pay higher interest rates on our cards.

    Businesses do not pay taxes, their customers pay those taxes.

    Businesses do not pay fines, their customers pay those fines.

    It's false economy to levy a fine. It would have been much better to prosecute those people in those businesses who made those loans. The CEO, the CFO, the Board of Directors, the chief Vice Presidents, the chief loan officers, and anyone else who promoted or approved those loans should have been prosecuted.

  • JimInSLC Salt Lake City, UT
    July 18, 2014 7:42 a.m.

    Citigroup and the other Too Big to Fail banks should have been allowed to sink or swim, solving their own financial problems in 2008. where laws were broken, those responsible should have been held accountable. Having propped the banks up with bailouts, they are back to their old ways and it is only a matter of time before they are needing to be bailed out again.

    What China is doing right is that they have manufacturing; Producing products that Americans buy. Manufacturing that was once done on US soil has been moved to China by US corporations. In order to save on labor costs we have put the economy in a precarious position.

    After 2008 the public should have dropped all of citigroups stock, IMO. Those investing in corrupt companies deserve what they get. I remember in 08 citigroup stock was down to like .90 a share and I was thinking I should buy some but then remembered my dislike for these banks and what they were allowed to get away with. There are better ways to earn money than profit from banks pilfering from people.

  • JoeBlow Far East USA, SC
    July 18, 2014 7:35 a.m.

    "It is better to hold companies accountable by the proper application of civil and criminal penalties than to smother them with over-reaching regulations."

    OK, so Citi does some bad things and gets fined.

    So tell me.

    - Did Citi the corporation do bad things or did PEOPLE who run the company and make decisions do bad things?
    - Has anyone ever seen a "corporation" in prison?
    - Who gets hurt most when a company pays a fine? Is it the corporate employees or the stockholders?

    If you want to reduce regulations, START holding C-level employees PERSONALLY accountable for the decisions that they make.

    I can assure you that when a CEO or CFO or COO risks prison time rather than a large corporate fine, very few "regulations" will be necessary.

    I know of no one who is anti-corporation.

    But I and many others are sick and tired of corporate criminal activity which results in a fine and no personal accountability.

    It is not rocket science as to why it continues.

  • The Real Maverick Orem, UT
    July 18, 2014 6:53 a.m.

    Still not enough.

    Especially since Citigroup is a person now, right repubs? Send Citigroup's leadership to prison. Take away their birth control and see how well their women take it.

  • cjb Bountiful, UT
    July 18, 2014 1:51 a.m.

    Todays stock holders get left holding the bag. Those (execs) responsible get off Scott free.

  • marxist Salt Lake City, UT
    July 18, 2014 1:05 a.m.

    If banks are too big too fail they should be publicly owned. Some will say that is socialism. Maybe, but bailing out private businesses with public money is the most unjust variety of socialism.

    I agree with you that regulation is a bust most of the time. Corporations always figure out a way around the regulations. But rest assured we will bail out the big banks again. To be fair let's nationalize them now.

    A related consideration. The GDP of the United States actually shrank last quarter, while the China's growth rate annualized was +7.5% What do the Chinese know we don't? China is a blend of socialism and capitalism - we know that. But the nature of that blend is unknown to us. We should have this knowledge. In fact it's dangerous for the United States to be so closely aligned with a country it understands so little about.

    So for clues as to how we proceed, the Deseret News may want to look east - to China.