WikiLeaks Bombshell: Emails Show Citigroup Had Major Role in Shaping and Staffing Obamas First Term
Martens, Pam; Martens, Russhttp://wallstreetonparade.com/2016/10/wikileaks-bombshell-emails-show-citigroup-had-major-role-in-shaping-and-staffing-obamas-first-term/
Publisher: Wall Street On Parade
Date Written: 11/10/2016
Year Published: 2016
Resource Type: Article
Cx Number: CX20254
According to emails released by WikiLeaks, which came from a hack of the email account of John Podesta, a co-chair of Obama's 2008 Transition Team, we learn that despite the obvious fact that Citigroup was both corrupt and derelict in handling its own financial affairs, Barack Obama gave executives of that bank an outsized role in shaping and staffing his first term.
The Presidential election of 2008 was held on November 4, with Barack Obama winning on a promise of delivering "hope" and "change" to a nation in the midst of the worst financial crisis since the Great Depression. At that time, Citigroup was a financial basket-case. It had already received $25 billion from the government's bailout program known as the Troubled Asset Relief Program (TARP) in October; it was secretly receiving hundreds of billions of dollars more each month in below-market rate, revolving loans from the Federal Reserve -- information which the Fed refused to make public despite multiple Freedom of Information Act requests from the media; and Citigroup was just 19 days from more hemorrhaging, requiring an additional government infusion of $20 billion and asset guarantees of more than $300 billion. Citigroup's stock was at $13.99, a decline of 63 percent in just 12 months and it was on its way to eventually trade as a penny stock, at 99 cents.
Citigroup had been serially charged by its regulators for abusing its customers and targeting the poor and financially uneducated. But key executives at the bank had played major