Another Reason To Seize Citi


What’s Citigroup doing with your $45 billion?  Shoveling most of it into the black hole known as its balance sheet.  And, as John Carney described, using some of it to give ex-executives insane perks for their much-appreciated help in driving the firm over a cliff.  For example:

Citi director Roberto Hernandez Ramirez will get to keep a bunch of pricey perks after he steps down from the board in April. Last year, those perks cost the company $2.61 million. What do you get for that?

  • Gets to fly around Mexico City in a company helicopter.
  • Gets security for him and his family.
  • Use of the company plane, for free of course.
  • Fancy office.
  • Hot secretary. (OK, we don’t actually know she’s hot, and she’s probably called an assistant. But what are the odds that she’s not a looker?)

Citi’s excuse for keeping RHR in such fine style is that he is going to remain “non- executive chairman” of its subsidiary Banco Nacional de Mexico. That job basically involves shmoozing with other rich folks and government officials while saying you are responsible for “governmental and client relations.

As John Carney says, “We’d say ‘nice work if you can get it’ but as far as we can tell there’s no work involved.”  There is taxpayer money involved, though.  And HRH RHR is leaving anyway, so we don’t have to worry about him being so angry about his Depression pay that he leaves.

If taxpayers had just let Citi go bust, or if the FDIC had seized it, it’s a safe bet that HRH RHR wouldn’t be walking away with diddly.

So how’s this for a counter-offer? Two weeks severance.