Citigroup CEO: It Was All About Leverage


Stunning interview with Citigroup’s CEO, Vikram Pandit.  Now, perhaps he might want to address how he perjured himself in front of Congress….but I digress….  From Bloomberg:

Vikram Pandit, chief executive officer of Citigroup Inc., talks about the financial crisis and the outlook for the bank and its Citi Holdings division, which contains assets marked for sale. He speaks with Charlie Rose at the Securities Industry and Financial Markets Association’s annual meeting in New York.

“When you go back and think about what brought all of this on, it was leverage. We’re still living through the impact of leverage: consumer leverage, bank leverage, government leverage. It seems wonderful to borrow just a little bit more when things are going good, but invariably the history of crises [show] leverage is at the heart of it. We learned it yet again what happens to the world when leverage rises to levels that are unsustainable, and we’re still living through that today in the form of what is going on with the governments, including our own, but not only our own. Certainly we’re all watching what is going on in Europe.”