And no sooner does Citi take over a bank that just failed, in part, because ellos los chaperon los penes de “La Raza”,  than it…does the exact same thing itself.
CITI AND THE CITI FOUNDATION AWARD $1,000,000 TO THE NATIONAL COUNCIL OF LA RAZA
Grant Supports Ongoing Capacity Building for Local Affiliates
Just an FYI – Citi was one of the banks scheduled to be bailed out under the terms of the Crap Sandwich™.
Memo to Citi:  Those who don’t learn from history are doomed to repeat it.
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4 responses to “It’s deja vu  all over again”
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Anyone else wanna bet ACORN was involved?
It don’t take a rocket scientist to make the correlations. And trust me, your General knows a thing or two about those boys. They have a really big clubhouse just a few miles south of HQ.
Not that I’m a big defender of La Raza Insignificante, but, it wasn’t donating money to LRI that got either bank into trouble. It was lending money to them that got them into trouble.
It is, sadly, better for a business, in the long run, to just throw money at LRI or ACORN, and hope they go away, than it is to actually follow good business practices.
Remember, it was bad lending practices that caused the housing bust, which then caused the (only extant on paper) drop in collateral with the banks, which then caused the (only extant on paper) asset crisis in the credit market.
Let the banks throw their money wherever they want. It’s their business, and they can do whatever they feel like. If they want to run it into the ground, and throw money at shakedown artists, let them.
Not directly, no.  Then again, I never said it did.
My contention is that the mere association of Wachovia with La Raza Insignificante  (good one, and stolen 🙂 ) cost Wachovia customers which it could have used.
That’s  the “in part” to which I was referring.
Actually, Wachovia needed new customers like fish need more water. Helpful, but, not needed.
What dragged Wachovia down was the acquisition of a sub-, sub-, SUB-prime lender (the lender specialized in ‘pick your payment’ and ‘go ahead and skip payments’ loans…), whose assets that were used as collateral on their books suddenly plummeted in value (due to the idiotic Sarbanes-Oxley Act…), meaning Wachovia, technically, and ONLY ON PAPER, no longer had enough assets to cover their deposits (which are, technically, considered liabilities, not assets), meaning they, technically, and again, ONLY ON PAPER, were insolvent. The ‘mark to market’ provision of Sarbanes-Oxley is what caused these banks to become insolvent…on paper.
This credit ‘crisis’ exists only on paper, and wouldn’t exist AT ALL if the ‘mark to market’ provision didn’t exist. For the record, ‘mark to market’ has existed in the banking industry for about 10 of the past 4,000 or so years…