Rubin’s got “regrets” and Prince is “deeply sorry” that management wasn’t more “prescient.” Also, you should know, that since taking up early retirement, Chuck has “given a great deal of thought to the unique events that led to the financial crisis and which bring us here today.” Read more »
Nobody really listened to him much though, probably because the subject lines of his emails to Bob Rubin and Co were fairly mundane (“THIS LOOKS REALLY FUCKING BAD, FELLAS”) and he forgot to mark them high alert. Just kidding, of course, that’s exactly what he did.
When it comes to creative narrative, you have to look pretty hard to beat the plaintiff’s bar. Take, for instance, the federal lawsuit jabbing Citi management with the accusation that their repackaging and remarketing of CDOs amounted to a Ponzi scheme, propping up CIti shares until insiders could exit. Chuck Prince and Robert Rubin are at the center of the mess, and, whatever you think of the claims, the timing could probably be better for Robert Rubin.
Still, who are we to turn our nose up at a well written complaint or the New York Post article that brings it to us in Technicolor?
‘PONZI SCHEME’ AT CITI [The New York Post]
Bloomberg reports that former Citi CEO Chuck Prince has been hideously forced to cut the asking price of his Greenwich, Connecticut house, which is now entering its sixth month on the market, to $5.85 million. The price tag is still about a million more than what Prince bought the Tudor for in 2003, but $300,000 less than he was hoping to score from some sucker in ’08. This is maddening to all of us but stewing about the injustice isn’t going to get us anywhere. We’ve got to think, god damn it, think.
Another day, another crisis in the credit markets. KKR Financial, which is a publicly traded investment vehicle run by Kohlberg Kravis Roberts, made headlines this morning when it asked for a restructuring of billions of dollars in short-term debt. Apparently they’ve struck a bargain with their investors to delay the repayment of the debt, which was due last Friday, until March. But reading about the story of KKR Financial is like watching the credit crunch in action.