Citi From Bigger To Bigger and Badder
Citigroup gained its power by merging and buying up other financial institutions. Now, the huge size of Citigroup is endangering the entire American economy. The financial corporation has already received 25 billion dollars from taxpayers, but it still can’t meet its obligations, and is begging for more.
They’re saying that Citigroup is so big that it can’t be allowed to fail. Senator Charles Schumer observes that because of Citigroup’s immense size, “If you let it go down, millions of innocent people are hurt.”
Senator Richard Shelby questions the wisdom of giving more to Citigroup, but doesn’t see any reasonable plan from the corporation to restore its financial stability. “Can they do it by a merger with somebody else?” Shelby asks.
Mergers are not a sustainable way for Citigroup to move from disaster back into success. Citigroup might have a bit more cash in the short term, but it’s already burned through 25 billion dollars in government handouts in just a few weeks. Mergers are part of the problem, not part of the solution.
If any more government cash is given to Citigroup, it must come with the following condition: Split Citigroup into many completely separate corporations, until it is no longer too big to allow to fail. Let those baby Citis that deserve to die, perish, and let only those splinter corporations that have true financial merit survive.