Thursday, 24 July 2014
Hightower: Is Citigroup’s $7 Billion Fine Bogus?
‘Media outlets across the country trumpeted the stunning news with headlines like this: “Citigroup Punished.”
At last, went the storyline, the Justice Department brought down the hammer on one of the greed-headed Wall Street giants that are guilty of massive mortgage frauds that crashed our economy six years ago. While millions of ordinary Americans lost homes, jobs, and businesses — and still haven’t recovered — the finagling bankers were promptly bailed out by Washington and continue to get multimillion-dollar bonuses. So, hitting Citigroup with $7 billion in penalties for its role in the calamitous scandal is a real blow for justice!
Well, sort of. Actually … not so much. While seven billion bucks is more than a slap on the wrist, it pales in contrast to the egregious nature of Citigroup’s crime and the extent of the horrendous damage done by the bankers. In fact, when it announced the settlement, the Justice Department itself pointed out that Citigroup’s fraudulent acts “shattered lives.”‘
