John Reed: I'm Sorry I Created Citigroup And Killed Glass-Steagall


John Reed, who originally helped merge Traveller’s Group with Citibank with Sandy Weill, is performing a mea culpa for creating megazombie Citigroup (C):

Bloomberg: “I’m sorry,” Reed, 70, said in an interview yesterday. “These are people I love and care about. You could imagine emotionally it’s not easy to see what’s happened.”

“I would compartmentalise the industry for the same reason you compartmentalise ships,” Reed said in the interview in his office on Park Avenue in New York. “If you have a leak, the leak doesn’t spread and sink the whole vessel. So generally speaking you’d have consumer banking separate from trading bonds and equity.”

Reed also apologized for essentially helping repeal the Glass-Steagall Act:

“We learn from our mistakes,” said Reed, who wrote an Oct. 21 letter to the editor of the New York Times endorsing a division of banking activities. “When you’re running a company, you do what you think is right for the stockholders. Right now I’m looking at this as a citizen.”

Read the whole thing >

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at