- posted 9 years ago
In the ongoing saga of how banks view the world, this article on Bloomberg today caught my attention. There is a very glaring absence of the "attorneys" who so vociferously and courageously champion shareholder and investor rights. There was no mention of Whackovia that I saw. I excerpted a few paragraphs below. A few months back someone here asked what I would want to prosecute bankers for. This a tiny portion of a reply.
"He said the bank failed to adequately disclose its agreement to pay Merrill Lynch & Co. executives and others $5.8 billion, or the fact that Merrill, which it was buying, was suffering losses of as much as $15.3 billion in the fourth quarter of 2008.
"The bank made misstatements on earnings calls and in financial filings about assets tied to subprime loans as the housing crisis unfolded in 2007, the SEC said July 29 in a complaint filed in federal court in Washington. Some disclosures omitted more than $40 billion in investments, the SEC said.
"Former Chief Financial Officer Gary Crittenden, who left New York- based Citigroup last year, agreed to pay $100,000 to settle claims he didn't disclose the risk after getting internal briefings. Arthur Tildesley, Citigroup's former head of investor relations, will pay $80,000 to settle claims that he helped draft disclosures that misled investors, the SEC said. Tildesley now heads cross-marketing at Citigroup, according to the agency."
[Those fines are an insignificant fraction of their "compensation."]