'PONZI SCHEME' AT CITI
Robert Rubin
"Citigroup's troubles have put
the former Treasury secretary in the awkward position of having to justify $115 million in pay since 1999, excluding
stock options, while explaining Citigroup's $20 billion in losses
over the past year and a government bailout of at least $45 billion." Source of
Quote: Wall Street Journal
Article
He also made an additional $30.6 Million dollars from the suspicious
sale of stock just before Citigroup crashed (which is mentioned in the article
below).
'PONZI SCHEME' AT CITI
By
PAUL THARP
December 4, 2008 --
A new Citigroup scandal is engulfing Robert Rubin and his former disciple Chuck Prince for their roles in
an alleged Ponzi-style scheme that's now choking world banking.
Director Rubin and ousted CEO Prince
- and their lieutenants over the past five years - are named in a federal
lawsuit for an alleged complex cover-up of toxic securities that spread across
the globe, wiping out trillions of dollars in their destructive paths.
Investor-plaintiffs in the suit
accuse Citi management of overseeing the
repackaging of unmarketable collateralized debt obligations (CDOs) that no one
wanted - and then reselling them to Citi and hiding the poisonous exposure off
the books in shell entities.
The lawsuit said that when the bottom fell out of the
shaky assets in the past year, Citi's stock collapsed, wiping out more than $122
billion of shareholder value.
However, Rubin and other top
insiders were able to keep Citi shares afloat until they could cash out more
than $150 million for themselves in "suspicious" stock sales "calculated to
maximize the personal benefits from undisclosed inside information," the lawsuit
said.
The latest troubles for Rubin, Prince and others emerged
in a 500-page investigation by Citigroup investors represented by law firm Kirby
McInerney.
The probe was used to amend and add new details to a
blanket investor lawsuit filed against Citigroup a year ago. The amended suit
called the actions of Citi leaders "a quasi-Ponzi scheme" to hide troubles - and
keep Citi stock afloat while insiders unloaded about 3 million shares between
Jan. 1, 2004 and Feb. 22, 2008 for huge profits.
In addition to Citigroup, Rubin and Prince, the
complaint names Vice Chairman Lewis Kaden, ex-CFO Sallie Krawcheck and her
successor CFO Gary Crittenden.
Rubin cleared $30.6
million on his stock sales, while Prince got
$26.5 million, former COO Robert Druskin got
nearly $32 million and former Global Wealth Management unit chief
Todd Thomson got $25.7 million, the suit said.
Citi denied the allegations and said it "will defend
against it vigorously."
[ yeah....yeah....yeah....we know.....you're all
innocent.....yeah sure! ]
Source:
Free Forum Hosting
Important Announcement
Recommend
First 
