Former Head of Citigroup Reflects

I just watched Bill Moyers interview John S. Reed, who retired from Citigroup in 2000, about the collapse of the financial industry. Many of the things John said confirm what I believe about what happened. Yet it seems suspiciously convenient that he left the company before the trouble really hit the fan. He called himself a “well-informed spectator”, but I find it hard to believe he was not more responsible than that. He was, after all, the head of Citicorp when it merged with Travelers Group, a move that went against Glass-Steagall (still in effect at the time), at least in spirit. This seems at odds with the criticism that John expressed during the interview against the repeal of Glass-Steagall. If combing retail banking with riskier financial services was a bad idea, why was he involved with the merger between Citicorp and Traveler’s Group?

Brief bio of John S. Reed on billmoyers.com: http://billmoyers.com/guest/john-s-reed/

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