via Daily News
It’s no secret that Citigroup board Chairman Richard Parsons has been working for months to repair the financial giant.
But, until now, even his closest associates didn’t know he also was wrestling with a personal crisis – how to tell his wife and three children he has fathered a child with another woman.
Parsons and model-philanthropist MacDella Cooper are the parents of a baby girl named Ella.
The 61-year-old former Time Warner chairman said only: “This is a private matter, and I prefer not to talk about it at this time.”
Cooper, 32, also declined to discuss the circumstances of her daughter’s birth.
“My private life is private,” the striking beauty said. “I’m sure you can draw your own conclusions.”
Cooper gave birth last August, according to a source, who said Parsons will support the child and has set up a trust fund for her education.
The widely admired executive is said to have become close to the former model – who says she has worked for Ralph Lauren and appeared in Glamour magazine – through his support of her MacDella Cooper Foundation, which she founded in 2004 to help orphans and abandoned children in her homeland of Liberia.
Besides making donations, Parsons was the keynote speaker at her foundation’s gala in October 2007
via Telegraph UK
The approximately $138 billion aid package on Thursday for Bank of America — including injections of capital and absorbed losses — as well as a $300 billion package in November for Citigroup both represented displays of financial gymnastics aimed at providing capital without appearing to take commanding equity stakes.
Treasury and Fed officials accomplished that trick by structuring the deals like insurance programs for big bundles of the banks’ most toxic assets.
Instead of investing tens of billions of taxpayer dollars in exchange for preferred shares in the banks, which has been the Treasury Department’s approach so far with its capital infusions, the government essentially liberated the banks from some of their most threatening assets.
The trouble with the new approach, analysts say, is that it is likely to conceal the amount of risk that taxpayers are taking on. If the government-guaranteed securities turn out to be worthless, the cost of the insurance would be much higher than if the Treasury Department had simply bailed out the banks with cash in the first place.
Christopher Whalen, a managing partner at Institutional Risk Analytics, said the approach also covers up the underlying reality that the government is already essentially the majority shareholder in Citigroup.
“There’s nobody else out there to invest in them,” Whalen said. “We already own them.”
Ben Bernanke, chairman of the Federal Reserve Board, outlined the elements of what could become the Obama administration’s new approach to bank rescues in a speech on Monday. Continue reading
Wow. Can you believe that this cat lost 4 billon dollars and did not even blink.
via Huffington Post
DUBAI, United Arab Emirates — The Saudi prince who owns a double-decker “flying palace” and recently raised his bet on Citigroup lost $4 billion in the past year, according to a published report Sunday, showing that even the ultra-rich are getting pinched by the global financial crisis.
The pain is relative, of course. Prince Alwaleed bin Talal remains the world’s richest Arab with a net worth of about $17 billion as of Dec. 2, Dubai-based magazine Arabian Business reported in its annual ranking. That is nearly twice as much as the second-richest on the list, but a considerable drop from the $21 billion the magazine said the prince was worth a year ago.
Ponzi-scheme’s galore, this fraud will make Madoff’s pale in comparison to the tune of a hundred billion. And to top it off Rubin’s son is in Obama’s camp, so let’s see how this plays out.
via NY Post
A new Citigroup scandal is engulfing Robert Rubin and his former disciple Chuck Prince for their roles in an alleged Ponzi-style scheme that’s now choking world banking.
Director Rubin and ousted CEO Prince – and their lieutenants over the past five years – are named in a federal lawsuit for an alleged complex cover-up of toxic securities that spread across the globe, wiping out trillions of dollars in their destructive paths.
Investor-plaintiffs in the suit accuse Citi management of overseeing the repackaging of unmarketable collateralized debt obligations (CDOs) that no one wanted – and then reselling them to Citi and hiding the poisonous exposure off the books in shell entities.
The lawsuit said that when the bottom fell out of the shaky assets in the past year, Citi’s stock collapsed, wiping out more than $122 billion of shareholder value. Continue reading