As proof that Citigroup is one gigantic tangled mess, Citi Chairman Richard Parsons boasts Citigroup Too Interwoven to Fail
Citigroup remains too "interwoven" to fail even after the government has plowed billions into rescuing the banking titan and Congress has passed laws taking aim at financial behemoths, Citi Chairman Richard Parsons told CNBC.
"It's not a question of too big to fail," Parsons said in a live interview. "It's a question of too interwoven in the fabric of the global financial life to fail."
Parsons said allowing Citi to fail previously or in the future would be akin to having "the heart, the pump of the economic system fail because then everybody else dies."
"It's probably the most important private financial institution for maintaining our economic strength and presence around the world. You can't let an institution like that go down," he said.
Do these clowns even realize what they are saying? Parsons just gave a superb reason Citigroup needs to be broken up.
I suggest Citigroup should be forced to sell itself off piece by piece by piece, until it is not "too interwoven to fail". The same applies to Goldman Sachs and Bank of America.
Anything too big or too interwoven to fail, is simply too big.
In a free market with adequate fraud-prevention controls between various operations, these banks would likely not have gotten so big in the first place. They certainly would not have survived this global financial crisis if they did.
These gargantuan banks only exist intact because of Fed and taxpayer sponsored bailouts. Adding insult to injury, these banks pose the same systemic risk as before. Topping it off, Citigroup has the gall to brag about it.
Mish's Global Economic Trend Analysis: 98 TARP Recipients Close To Failure; Citigroup's Chairman Gives Reasons Citigroup Should Be Broken Up