Reading Next Player in Financial Crisis to Not Take [Responsibility] - Citi about the testimony of Wall Street execs, current and former, reminded me of children on the playground. Their testimony only needs a little translation from adult-speak spoken during this recent game of public charades to what we might hear, perhaps, from 5-year olds on the playground.
Two leaders of disgraced financial titan Citigroup on Thursday told a special panel looking into the origins of the financial crisis that they were unaware of the huge potential for losses from bad mortgages and argued that federal regulators failed to see the very same threats.Translation: Why are you blaming me now? You're not blaming the other kids are you? Huh?
Testifying before the bipartisan Financial Crisis Inquiry Commission, Robert Rubin, a former Clinton Treasury secretary and influential member of the Citigroup board of directors, acknowledged that he only learned in September 2007 in discussions with CEO Charles Prince that Citi owned about $43 billion in complex securities backed by U.S. mortgages.Translation: He (with finger pointing) was supposed to tell me and, um, he didn’t. So...it’s not my fault. It’s his. (Finger still pointing...first looking defiant, then head down, foot scratching idly in the dirt.)
It wasn't necessary for senior management to take a closer look at the securities, Rubin said, because they carried top-grade ratings.
Translation: Yeah, and um, those guys said it was safe. And I don’t know what those words do-dilijents, and um, credit analuhsumpn, mean. So I don't know.
Note: Apologies to all 5-year olds and their families and teachers. If by chance some may behave like the above former advisor to Citibank when held accountable for his behavior...it's ok; you're 5; you're learning. Most 5-year olds behave with far more more maturity and respect for your friends and families than what we've seen in recent days from financial leaders. I used your demographic only to highlight...what...the gap between what our adults deliver and what they could deliver.
* istock photo from peskymonkey
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