Wednesday, October 31, 2007

Call Out The Cops-2

"Accounting groups have raised the question of whether Citigroup and other managers of the SIVs should account for the funds, many of which face potential losses, on their balance sheets. ... Nearly 100 bankers and lawyers are racing to put the [MLEC] plan together. ... If [MLEC] doesn't work, Citigroup and other SIV managers could find themselves in a bind that could force them to take financial hits. ... But that prospect has raised the issue among accounting professionals about whether the bank shares in potential losses to such an extent that it should consolidate the SIVs onto its own books", WSJ, 31 October.

This is a no-brainer. Citigroup would have no problem if it didn't "own" the SIVs. Why is Hank Paulson trying to create MLEC? Where were the: SEC, the Big Four CPAs and Justice Department (DOJ) when the SIVs were created? Where are the securities fraud lawsuits? Imagine, the DOJ could prosecute William Lerach and Martha Stewart. What about Citigroup executives? See my 14 October post about this.

In 1979 I heard Jesse Jackson (JJ), yes, that JJ, give a speech in Chicago. He said something to the effect that, "The government should be as concerned about crime in the suites as crime in the streets". In 1979 I thought JJ was crazy. I don't anymore.

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