Now that Citigroup has successfully persuaded the government to give its TARP funds back to the government, there must be a sense that all danger in the large banking industry has been eliminated to the largest extent possible. Yeah, right. Citigroup is still losing money! We are right back to 2008.
The main reason for this rush to payment is the executive pay issue. Citigroup wants to get away from the government pay umbrella.
They didn't expand lending. They didn't expand staff to handle the glut of foreclosures.
They did find money for bonuses though.
There will be a lot of pats on the back on this one. But it will mostly be from bankers and politicians that collectively have let us down.