Saturday, November 22, 2008

Weil family fortune crumbles

Sandy Weil rolled up Citigroup into a financial juggernaut on paper. He even invested more money into Citigroup when it was raising money at 30 in January.

Now the stock is under $4.

Sandy Weil said a part of the problem at Citigroup was a flawed succession model, where unqualified candidates became CEO.

Now it's his problem also. Weil's philanthropic pledges now will be about as good as Alberto Vilar's. But this time, the first cause of it was Chuck Prince who danced while the music had stopped. But he had help. Sandy also picked Bob Willumstad, as COO to work with Chuck Prince. He left to run AIG into the ground

His daughter, Jessica Bibliowicz has now run National Financial Products into the ground. This time, it was just a roll-up of insurance companies, and now NFP is at a dollar. Barron's had that story this weekend.

Sandy Weil's protege at Citigroup was Jamie Dimon, of JP Morgan, who was forced out by Sandy Weil in a power struggle. I wonder if Citi would of been better served with him?

It just wasn't the flawed succession model, but Citigroup's abuse of it's goodwill which allowed it to fool investors about the health of it's balance sheet, where the right hand didn't know what the left hand was up to. Even the Prince Alaweed of Saudi Arabia got conned.

I can understand that the Saudi's don't want to know where their left hand has been, but how about Citigroup's board?

What was Bob Rubin's $15 million salary for?

Citi was the company that never sleeps, because it's board of directors never woke up.

In corporate America, that's a symbiotic relationship!