Wednesday, October 17, 2012
Sheila Bair Provides Her Answer For Citigroup's CEO's Abrupt Resignation
Sheila Bair was the head of the FDIC during the bank rescue operation. She opposed Citigroup's efforts to acquire Wahcovia when it became insolvent. Well Fargo eventually made the acquisition and it has worked out well. One of her reasons for opposing the Citi acquistion was that it was a poorly managed bank. Moreover, Citi brought in someone with little banking experience to run a very complex bank. His experience was in operating a hedge fund which he sold to Citi for $200 million. A few months after the purchase, the hedge fund had to be shut down. He also had experience as a trader at a large investment bank, but this is not the same as running one of the largest banks in the world.