Mike Mayo, author of “Exile on Wall Street” and banking analyst for CLSA, said Citigroup’s chairman Dick Parsons should step down for failing to shake the bank’s corporate governance issues.The thing is this isn’t the first time he’s criticised Parsons.
In his book, Mayo refers to a Bloomberg BusinessWeek profile of Parsons where the Citi chairman refers to Treasury Secretary Tim Geithner as “Timmy” and his ability to just call him up.
Parsons had a chummy relationship with the Treasury Secretary. “Timmy Geithner would say, ‘Call me directly, because this is too important an institution to go down,'” Parsons says. According to the Treasury Secretary’s schedule, available online, Geithner spoke frequently with Parsons in 2009. The Citigroup chairman also got along with well with Dugan, whom he calls a “good guy.”
“He had the ability to call the Treasury Secretary anytime he wanted to flaunting any access that he might have. I thought that was an embarrassment to the industry,” Mayo said in a telephone interview with Business Insider, adding, “What kind of signal does that send to a small bank that would like to have access to the Treasury Secretary? It sends a signal that the industry is rigged.”
What’s more is Mayo said if, in fact, Parsons had that sort of access to the Treasury Secretary he really shouldn’t be flaunting in such a public forum.
Mayo called those comments “arrogant.”