Citi CEO says the megabank is ‘different,’ ‘healthier’ since it needed $45 billion bailout
Facing sharp questions from bailout overseers,
“I am pleased to say we are in a far different and much healthier position,” Pandit said in testimony before the Congressional Oversight Panel. The independent watchdog group oversees the $700 billion financial bailout.
That echoed earlier testimony from Treasury’s top official handling the cleanup of the crisis. Assistant Treasury Secretary Herbert Allison said
He said taxpayers will likely end up with a profit on the entire set of
But Allison frustrated panelists by refusing to answer many of their questions. He would not discuss events that preceded his arrival at Treasury, provide any analysis of the company’s situation or describe conversations between
Allison described Treasury as a “passive investor” that is barely involved in overseeing
His reticence led panel chairman Elizabeth Warren to ask, “Are you saying today that no one in Treasury monitors the financial condition of
“We do look at public information,” Allison replied.
The bailouts put
Warren said the great danger is that
“The United States government will bear any burden and pay any price to ensure
Pandit faced his harshest criticism came from Damon Silvers, policy director for the AFL-CIO federation of labor unions.
He said he found it difficult to believe Pandit had no memory of conversations between
Pandit would not discuss those conversations. Panelists had to ask the question several times before Pandit even acknowledged that they took place.