Tuesday, October 16, 2012

- Vikram Pandit Is Out

I have nothing meaningful to add to what you can get from CNBC except this:

The press and the non financial population talk about Goldman Sachs as if they are the ones who are in bed with the government. But in reality, while ex Goldman staffers hold many top positions in the government, the ties to citi management are much closer.

If I were forced to nominate an already existing group to play the role of the villains in a performance art re-enactment of Atlas Shrugged, the board of Citi would be on my short list.

Goldman is (at least partly) worried about excellence. Citi is worried about sticking close to government to crush it's competition. They are the ultimate financial rent seekers and are so effective at it that Goldman and JPMorgan, superior banks by virtually any metric, were both forced to take bailout money to protect them.

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