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Robert Rubin and Enron
The New York Times reports that former Treasury Secretary Robert Rubin may take over as CEO of Citigroup on an interim basis following the departure of its current chairman, Charles O. Prince III. The article notes that Mr. Rubin's reputation may have been tarnished in recent years because he has been associated with the decisions of Mr. Prince, which have led to large loan write-offs for the bank.
In this respect, it would have also been appropriate to note Mr. Rubin's involvement with Enron. As the NYT previously reported, when the collapse of Enron was imminent, Mr. Rubin phoned a former associate at the Treasury Department to see if he would ask the credit rating agencies to delay downgrading Enron's debt. Citigroup held hundreds of millions of dollars of Enron's debt at the time.
Since there may be important ethical and legal questions surrounding Citigroup's dealings with structured investment vehicles and exotic financial instruments, this piece of Mr. Rubin's background would seem highly relevant at the moment.
--Dean Baker
COMMENTS (4)
One example was the way NAFTA was used to open up Mexico's banking system to foreign ownership, profiting elites on both sides of the border.
The governments of Carlos Salinas and his successor, Ernesto Zedillo--hailed in Washington as great free-market reformers--privatized government-owned banks, turning them over to business cronies, and, through NAFTA, revoked the legal ban on foreign ownership. When the banks started to fail, they were given huge government subsidies to make them attractive to transnational buyers. At the same time, the "reform" government was slashing subsidies to the poor for food and medicine.
Banamex, the country's second-largest bank, was bought by a Mexican syndicate, owned by Salinas pal Roberto Hernandez Rodriguez, for $3.2 billion and when, thanks to NAFTA, foreigners were allowed to own Mexican banks, it was resold to Citigroup for $12.5 billion. Robert Rubin negotiated the deal for Citigroup, where he had gone after leaving the Treasury Department. The Mexican government's welfare program for Citigroup and other foreign investors continues: In 2003 government subsidies to private banks (more than 85 percent of them now owned by foreigners) were almost three times those spent on roads, schools and other infrastructure.
http://www.thenation.com/doc/20060213/faux
This Rubin is a real piece of work. He fights as hard as anyone for the enrichment of himself and his cronies and yet he is treated as a beneficent wise man. One can only hope that after this neoliberal nightmare has ended, Rubin is viewed by history as just another politically connected Wall Street grifter.
Posted by: Ponzi Q. Globalization | November 4, 2007 2:36 PM
Formatting fix (Dean, you have to get a preview option here)...
One example was the way NAFTA was used to open up Mexico's banking system to foreign ownership, profiting elites on both sides of the border.
The governments of Carlos Salinas and his successor, Ernesto Zedillo--hailed in Washington as great free-market reformers--privatized government-owned banks, turning them over to business cronies, and, through NAFTA, revoked the legal ban on foreign ownership. When the banks started to fail, they were given huge government subsidies to make them attractive to transnational buyers. At the same time, the "reform" government was slashing subsidies to the poor for food and medicine.
Banamex, the country's second-largest bank, was bought by a Mexican syndicate, owned by Salinas pal Roberto Hernandez Rodriguez, for $3.2 billion and when, thanks to NAFTA, foreigners were allowed to own Mexican banks, it was resold to Citigroup for $12.5 billion. Robert Rubin negotiated the deal for Citigroup, where he had gone after leaving the Treasury Department. The Mexican government's welfare program for Citigroup and other foreign investors continues: In 2003 government subsidies to private banks (more than 85 percent of them now owned by foreigners) were almost three times those spent on roads, schools and other infrastructure.
http://www.thenation.com/doc/20060213/faux
This Rubin is a real piece of work. He fights as hard as anyone for the enrichment of himself and his cronies and yet he is treated as a beneficent wise man. One can only hope that after this neoliberal nightmare has ended, Rubin is viewed by history as just another politically connected Wall Street grifter.
Posted by: Ponzi Q. Globalization | November 4, 2007 2:39 PM
The stock has gained 150% from Oct 8, 2007 to Oct 22, 2007.
By the way check this company MDFI. Their stock is set to increase because of their association with Apple iphone and Complete Care Medical. Find more about this company and stock http://www.growurmoney.com/medefile/
Posted by: gowri | November 5, 2007 3:16 AM
The governments of Carlos Salinas and his successor, Ernesto Zedillo hailed in Washington as great free market reformers privatized government owned banks, turning them over to business cronies, and, through NAFTA, revoked the legal ban on foreign ownership. When the banks started to fail, they were given huge government subsidies to make them attractive to transnational buyers. At the same time, the "reform" government was slashing subsidies to the poor for food and medicine.
Posted by: online game | March 29, 2009 1:54 AM