Citipoop: Greasing the Weill

From the New York Post:

Just weeks after Citigroup averted total collapse with a $45 billion shot in the arm of taxpayer cash, the bank jetted its former CEO and his family on one of its corporate jets to a posh Mexican resort for New Year’s, The Post has learned.

Sandy Weill, 75, hopped aboard the tanking bank’s Bombardier BD 700 Global Express on Dec. 26 with his wife, Joan, daughter Jessica, her husband and their children.

…snip…

The holiday jaunt came the same week that Citigroup – which lost $28.2 billion over the last five quarters and cut 75,000 jobs globally in 2008 – agreed to curtail runaway corporate expenses as part of a deal to get the massive influx of federal money.


Original DVD cover.

Weill, among the richest men in the country, was Citigroup’s CEO until 2003 and its chairman until 2006. He played a key role in forging the company into the behemoth that toppled under its own weight in the recent credit crisis.

Although he stepped down in 2006, he remains an adviser to the company and was to keep access to corporate jets until 2016 as part of a blockbuster retirement package he worked out with the bank.

But with the recent collapse, Weill agreed last year to give up most of his perks – including access to company planes – as of April 2009.

Hey, Sandy, you’re a billionaire! Buy your own friggin’ plane!

From New York Magazine:

[The estimate of the cost is] $60,000 to $80,000 for the whole trip. Apparently, according to SEC filings, Weill reimbursed the company for a portion of the costs, and he has now, he says, “voluntarily” given up access to the jet, in addition to various other perks that he probably never should have been receiving in the first place. Which brings us to the real villain here, the person who authorized these expenses: CEO Vikram Pandit. Who, the very week Weill was sunning himself in Cabo, made a big public show of forgoing a bonus and cutting down on corporate expenses. We can’t help but wonder if, when Pandit crafted his lines about the necessity of frugality in the face of the “harsh realities of 2008,” he thought, in his mind’s eye, of Weill, oiled up and sunning himself on Los Cabos. Did he hope no one would find out about Weill’s little jaunt? Or was he so arrogant that he never thought anyone would? In the past, this kind of utterly tone-deaf behavior and disregard for the populace has stirred revolutions. Now, of course, we’re all too lazy. But at the very least, it would be nice if it got Vikram Pandit fired.

From Blogging Stocks:

Over the weekend, the New York Post reported that former Citigroup Inc. (NYSE: C) Chief Executive Sandy Weill and his family flew on a company jet for a vacation in Mexico weeks after the New York-based bank received a $45 billion bailout from the federal government and said it would slash 75,000 jobs. Today, the now-disgraced banker said he will give up the perk.

According to the Wall Street Journal, “Weill’s office said in a statement on Monday morning that `in light of the unprecedented circumstances that Citi finds itself in’ he decided to stop using Citi aircraft immediately.” Wow, if you did not know any better you would have thought he had given up his left arm instead of a seat on a luxurious jet.
This whole episode is disgusting.

When Weill was forced out as CEO in 2003, he wasn’t fired. Instead, he stayed on as chairman of the New York-based bank until 2006. Then he was rewarded with a nice golden parachute, which guaranteed access to the firm’s corporate jets until 2016. His personal fortune is estimated at more than $1.3 billion.

…snip…

The firm, which lost $8.3 billion in the fourth quarter, canceled its order for a new $52 million jet after President Obama got ticked off. Its share price is in ruins and the financial supermarket strategy that Weill championed has been scrapped. Weill is the last person who deserved to be treated like a king by Citigroup.

From The New York Times:

There was none of the old swagger at Citigroup headquarters on Friday. The bonus checks had landed — and some of the bankers were grumbling.

After a year of yawning losses at the company, employees lamented that times were getting lean. The giant bank, the recipient of two multibillion-dollar rescues from Washington, had paid out only about $4 billion in bonuses.

Only?

If you’ve never worked on Wall Street, it is hard to wrap your head around the idea that a company that lost nearly $19 billion in a single year, as Citigroup did in 2008, could still pay its employees billions in bonuses. It is probably even harder to believe that some of those employees grumble about it.

…snip…

To bankers and traders, bonuses, which account for the bulk of their pay, justify those long days and sleepless nights spent crunching numbers or watching bond prices dance across computer screens.

But with everyone from President Obama on down chastising bankers for paying themselves billions in bonuses at a time taxpayer money is propping up the financial industry, once-unthinkable questions are starting to arise. Could bonuses, the stuff of Wall Street dreams, become a thing of the past?

…snip…

[…] bonus resentment is building. On Friday, Senator Claire McCaskill, Democrat of Missouri, proposed a bill to cap workers’ pay at banks that received bailout money at $400,000, including bonuses. Even now, with Wall Street awash in red ink, stars are pulling down millions.

…snip…

Even some bankers, at Citigroup and other institutions, said they felt a bit ashamed about getting bonuses in hard times like this. But none of them offered to return the money.

23 Comments

Filed under Barack Obama, Corporate greed, Corruption, Democrats, humor, movies, parody, politics, Scandals, snark, Wordpress Political Blogs

23 responses to “Citipoop: Greasing the Weill

  1. Dusty

    Doesn’t the boldness they display just piss you the hell off? Did they actually think this crap wouldn’t get press?

    They either don’t care or don’t have a clue and are so out of touch it’s pathetic.

  2. jeb

    McCaskill said it best, “What planet do these idiot live on?”

  3. Pingback: 2/3- Views from the Heartland: Other Blogs « American Heartland Bar and Grill

  4. dusty,
    i just got done reading a diary over at the big orange about a 34-year-old who used to post there. he’s dead from pancreatic cancer. he waited to go to the doctor, because he didn’t have health insurance. if all the billions that were thrown at the bastards on wall street had gone to hire doctors who would see patients whether they had insurance or not, just think what a difference that would make in so many lives. think of the money that would be freed up to buy things if families didn’t have to spend thousands of dollars for crap insurance. instead, a handful of greedy pieces of filth made lots and lots of money for doing really their job really badly, and the entire economy is on the verge of disaster.

    enough of bailing out usurious banks. give people mortgages at decent rates, decent affordable healthcare, and hire some teachers. that will give the economy the kick start it needs.

    sorry for the rant, but i’m pissed!

  5. jeb,
    they don’t live on planets; they live in magical ivory towers. 👿

  6. Oh my word. That is just so precious! Of course they should have it all and more!

  7. jlms qkw - jenn

    nonnie you rock!

    there was a comment in the open thread that pharma stock went up today after daschle bailed. that’s frickin’ pitiful.

    there was a movie about this – ?”wall street” – like 20 years ago, right? the greed thing?

    sandy weill has the billions because he gets other people (us) to pay for his travel. sick sick sick.

  8. Ram Venkatararam

    Unbelievable…you know it’s bad when “even some bankers feel ashamed”

    I believe, in fact, that is supposed to be one of the first signs that the world is coming to an end.

  9. geez53

    Bernie Sanders (I-VT) is on Rachel Maddow’s show as i type. He’s explaining the executive pay restrictions for companies receiving TARP money.

    We probably won’t get this thing into law, but i hope it at least wakes these greed mongers to the fact that we a sharpening the guillotine blades.

    HEY!!!!! Rachel had a nonnie looking covers on her show! They were Blago themes. Are you moon-liting ?

  10. nightowl724

    nonnie, I appreciated your rant as much as I did your poster tonight ( a lot!).

    lisa, ram – funny comments.

    I have nothing to add to this story of slime and crime…

  11. lisa,
    they’re just darlin’, aren’t they? then again, the idiots in d.c. gift-wrapped the money, so why not take advantage? i blame the dems just as much as the rethugs for this. after the wmd drama, they knew that chimpy & co. could not be trusted, but as soon as paulson said the economy was about to go under, they gave him carte blanche. now, they’re bellyaching that there was nothing else they could have done. break out the violins and onions. i’m sick of all of them.

  12. thanks jenn!
    i wasn’t really angry when i made the poster or when i posted it. however, my ire has been increasing over the last few hours. i don’t know why it’s getting to me, when it’s just business as usual in the old u. s. of a. wall street had at least 2 different covers–this one and this one.

  13. ram,
    they feel guilty, but not enough to give the money back. next time they come to the food here convenience store, slip some ex-lax into their slurpees!

  14. geez,
    i usually catch rachel’s show when it reruns. if steep penalties (including incarceration) are not made into law, then the wall street people and bankers won’t care. they’ve already proven that they don’t give a damn about anyone or anything other than themselves.

    what a sweet gig it would be to make silly graphics for tv shows! i would charge them a lot less than their usual folks!

  15. nightowl,
    i really have to go find a movie to work on–a funny one. this subject is making my blood pressure skyrocket.

  16. What’s the over-under on mobs carrying torches and pitchforks (or their suburban/urban equivalents) appearing in the US?

  17. neon vincent,
    i’ll get the tar if you’ll get the feathers!

  18. I’ll pass for now, but only for now.

    As for the over-under, I’ll set it at 5 months for the first riot in the U.S. Torches and pitchforks might take 16 months to appear. I’ll see if I can tempt Stranded Wind into taking the under.

  19. Dusty

    Nonnie, My son’s closest friend committed suicide after his bi-polar meds were cut off by Medicare for apparently no good reason. He tried to check himself into a pysch ward but was only allowed to stay overnight since he ‘didn’t have healthcare’ to cover the cost.

    No one is more pissed off than I am over the nations lack of Universal Healthcare..no one.

    Our priorities as a nation are so fu¢ked up it’s despicable.

  20. neon vincent,
    the only thing that might prevent the tar and feathering and the torches and pitchforks is the fact that most people won’t be able to afford any of them in this crappy economy. maybe that was the chimpy administration’s plan all along. 😡

  21. dusty,
    it’s a disgrace. a full third of health care bucks goes to administrative costs. it’s ridiculous. they standardize tests for schools, but they can’t standardize forms for insurance, hospitals, and doctors’ offices? maybe every member of congress needs to stand over the graves of people who died because they couldn’t afford medical care. they don’t seem to give a $hit, since they receive excellent care for life. even typing this makes me so livid. it’s just so infuriating.

  22. your blog is so fantastic, i cant believe it, so cool. greats

  23. thank you, ionji,
    welcome to the raisin! 😀 hope you will visit again.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s