Citigroup Executives Griped About ‘Take-It-Or-Leave-It’ Bailout
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Citigroup Inc. executives, on the brink of a bank run in 2008 that U.S. officials believed could imperil the global economy, griped that terms of a taxpayer bailout would be too costly for the company.
“Many people” at Citigroup opposed the proposal, even after the bank’s stock price plunged below $5, companies started pulling deposits and trading partners demanded collateral, according to the top U.S. bailout watchdog. Federal Deposit Insurance Corp. Chairman Sheila Bair worried the bank wouldn’t be able to open on Monday, Nov. 24, the next business day.