BANKS-RUNAWAY TRAINS

~The Royal Bank of Scotland was fined 24 million dollars recently by British regulators for not advising mortgage customers and not responding to complaints. Because the RBS settled early, their penalty was reduced by 30%. What has this got to do with the United States? Let’s take a look. Banks in the United States have been caught up in a lot of disgraceful conduct and Trillions in bailouts. Bank of New York Mellon, needing a good shakeup – read Mike Mayo’s report for the bank to consider a major overhaul. Mr. Nelson Peltz and – pushing for changes at Bank of New York Mellon – Senators pushing SEC to stop giving banks a pass on wrongdoing – like giving the Royal Bank of Scotland group “special treatment” like CITI special treatment for their US operations of illegal conduct. The corruption and mismanagement of these banks have held homeowners hostages, took years to receive a little slap on the wrist – for the fraud, and abuse these banks caused. Bank of New York Mellon has decided to move on up after selling its headquarters at the corner of Wall Street and Broadway for 585 million to a developer. Wonder if Nelson Peltz who invested 1.05 Billion in Bank of New York Mellon knows of their corruption to “play plaintiff” in a crooked scheme to foreclose on people  which still is going on. One lawsuit includes Bank of New York Mellon, Ocwen playing servicer and clunk foreclosure mill law firm. Now, they bring in another law firm McGlinchey and Stafford. Oh, yes, a judge who looks the other way regarding all of the illegal corruption – bribery or stupidity anyone? This group plays. Hang in there, this all comes back around to another biggie who needs broken down in size to help stop the fraud. Citigroup who is a runaway train, big time – and finally some who now realize Citigroup needs a “breakup”, cities interest is worldwide. Their tentacles reach to Southeast Asia, Singapore – Hong Kong – India – Mexico – Madrid and more and more. Remember Tim Geithner – Sec. of U.S. Treasury for four years before becoming president of investments? Well, going or said his first experience with India began when he was six years old. In fact, Tim Geithner spent years of his life in Asia. Is it any wonder he was the spinning wheel that got CITI big bailouts of tax dollars over and over. How much did he have invested to push that hard against homeowners – foreclosures- and bail out banks who created the crisis, then took the money for jets, bonuses, compensations, trips – the list goes on. Remember in 2008, Citigroup was the only bank of the nine at that time that was insolvent. Geithner and Dugan picked for the force federal bailouts. There allegedly wasn’t anything Geithner would do to help CITI out.
Is Citigroup looking for another bailout? The dog Frank act was supposed to put a stop to taxpayers paying for the corruption and mismanagement of banks “too big to fail” but will it hold up? Banks that were too big to fail in 2008 are now according to, Ms. Yellen, FDIC, bigger than before. According to the New York Times shareholders of CITI are still 90% worse off than in 2005. Citi has put on a face that it has cleaned up some, but is it stable and can it hold up? If so, why are they looking to break it up? The answer is obvious. Fraud is nothing new for Citigroup – 2014 CITI admitted to its Mexican, Banamex, a $400 million swindle – because of this, the Fed supposedly stopped CITI’s plans of increasing their dividends – ouch! But with CITI’s record, they will probably find a way of getting past all this – remember when John Dugan refused to lower CITI’s rating when it was going down. His excuse – the government bailouts CITI was getting – he didn’t have to. So, his deception of keeping CITI’s ratings up, was a lie of Dugan’s. Will breaking up city become a reality? If it does, will it be done in increments only to look as if something was really achieved to full taxpayers and investors? When dealing with city does one need to follow Roosevelt words, “walk softly but carry a big stick” right now, Citigroup is flying under more flags that hide and confuse- if one section comes under fire for corruption or fraud. Will spinning off these into branches flying under different names make a difference? Citi’s business in North America already has to the tune of “900 branch banks” credit card businesses and numerous other entities under different names. Citigroup is just that, a group and it is starting to sell off because it has not complied with the “stress test”,that the banks were to have in place.
This is an opinion article and not intended to give advice – the contributor is not an attorney.