Citigroup's management questioned

An in-depth article on The New York Times website investigates how Citigroup was able to pile up such massive amounts of toxic assets without anyone inside the company raising alarm.

But many Citigroup insiders say the bank’s risk managers never investigated deeply enough. Because of longstanding ties that clouded their judgment, the very people charged with overseeing deal makers eager to increase short-term earnings — and executives’ multimillion-dollar bonuses — failed to rein them in, these insiders say.

Another move may come back to haunt the company in coming days or weeks: according to the article, as Citigroup built up mortgage-related securities, it moved those troubled assets off its books.
Some analysts worry that the company will have to bring them back on the books, which could hurt the company even more as it tries to recover.
As the federal rescue of Citi moves forward, more information may come out about how the company was mismanaged and how it arrived in the position it now finds itself in.

To read the article, click here.