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Mark Gongloff

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Sandy Weill, Builder Of Too Big To Fail, No Longer Accepts Blame For Crisis

Posted: 05/07/2012 5:51 pm

The man who brought you Too Big To Fail has had just about enough of everybody blaming him for big banks failing.

In an interview with Fortune's Nin-Hai Tseng, Sandy Weill, the former CEO of Citigroup, said his lumbering beast of a bank, and other lumbering beasts like it, aren't to blame for the crisis.

Weill was the CEO of Citigroup until late 2003, during the key "becoming a monstrous disaster waiting to happen" phase of its existence. He lobbied, tirelessly and successfully, to break down Depression-era regulations against banks becoming too big. He even has a plaque in his office that boasts "The Shatterer of Glass-Steagall," according to a New York Times report.

And after (or, really, before) those regulatory shackles were cast aside, Weill worked tirelessly and successfully to bolt as many moving parts onto Citigroup as he could. Every other bank followed suit, just to keep up. Citi was king of them all for a while, the biggest bank in the world, and Weill rode off into the sunset in 2006, when he retired as chairman, his handiwork complete.

And then the wheels started to come off. About a year and a half after his departure as chairman, Citi announced horrific losses due to its exposure to subprime mortgages, and a year after that the government pumped $45 billion into the bank to keep it from creating a black hole into which all of our money would be sucked. Citi has ever since been shedding as many of the parts Sandy Weill bolted on as it can.

So, naturally, Sandy Weill, whom Time magazine labeled one of the "25 People To Blame For the Financial Crisis," feels deep regret for all of this, no?

No! Are you kidding? Do you really think the man who loaded half his family tree onto a Citigroup jet for a Mexican vacation just weeks after the bank received the second of its enormous taxpayer bailout checks still has a functioning shame gland?

In the Fortune interview, Weill said "too big to fail" is not the problem you are looking for. In fact, making banks smaller would be the real problem, come to think of it:

I think this whole concept of fixing 'too big to fail' is a problem because when you create an environment where you can't make a mistake then you're also creating an environment where nothing good is going to happen.

So true: If you don't give an alcoholic the keys to the liquor cabinet and the Ferrari, then obviously nothing bad can happen. But then nothing much fun can happen, either, can it?

In fact, Weill said, the time has come for us all to stop with the pointing of the fingers at this or that ex-CEO and just move on. After all, we were all equally to blame. Maybe, before you start pointing the finger at Sandy Weill, you should head for the mirror and point a finger there, too:

I would say there is enough blame to go around. I think that the financial industry made some mistakes that created issues, our government made mistakes that created issues, the regulators made mistakes that created issues. People made mistakes that created issues.

Lots of people were at fault. I think we want to move on. There comes a time when you stop punishing people and ask how do we build this back in a way that's going to be safer for the future? We should concentrate on the future and positive thinking.

Sandy Weill hopes you all feel adequately ashamed of yourselves.

 
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The man who brought you Too Big To Fail has had just about enough of everybody blaming him for big banks failing. In an interview with Fortune's Nin-Hai Tseng, Sandy Weill, the former CEO of Citigrou...
The man who brought you Too Big To Fail has had just about enough of everybody blaming him for big banks failing. In an interview with Fortune's Nin-Hai Tseng, Sandy Weill, the former CEO of Citigrou...
 
 
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HUFFPOST SUPER USER
Mark Mark
02:26 PM on 06/18/2012
What part of "If you're too big to fail, you're too big to exist" is so hard to understand.

I get it, the readers get it. Should I explain it to the cat and have the cat explain it to this guy.

'Cause the cat's gonna get it.
BigDaddyWow
This member is licensed to spank
11:10 PM on 05/08/2012
That's the Wallstreet arrogance talking. Sure there were a lot of people to blame but Weill was certainly a key figure and no doubt, he made a bunch of money off of the bubble. Until people like this parasite are frightened of screwing up, Wallstreet will keep doing this over and over.
HUFFPOST SUPER USER
Mark Mark
07:47 PM on 05/08/2012
I loved the fact after 10 years as a Citibank customer with noe missed payment, no late payments and outstanding credit Citibank chopped me off. If that is the way you treat GOOD customers, I can only imagine how you treat the deadbeats.
HUFFPOST SUPER USER
Mark Mark
02:24 PM on 06/18/2012
They up the credit limit. BoA chopped my small business credit from $25,000 to $100 in ONE MONTH.

This killed my business and I let people go and found a regular job. Way to create jobs, banks.
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HUFFPOST SUPER USER
jwilson1
07:28 PM on 05/08/2012
Citi was finically insolvent 4 times in the last 10 years....good job you disgraceful failure
and thanks for the great recession!
HUFFPOST SUPER USER
JShankel
I want my country forward
02:59 PM on 05/08/2012
If F
02:13 PM on 05/08/2012
Hey Sandy, shut the F up! I'm a pretty tolerant person, but you are a sub-human. I don't want your shame. I want you to go away.
HUFFPOST SUPER USER
Dminkel
01:44 PM on 05/08/2012
Yes, I guess he is right. I should be ashamed that everything I worked for is gone. What was I thinking working to pay my bills, provide education for my children, plan for my retirement, create jobs for students, and the BIGGEST mistake I made was to put my trust in people who I thought knew more about money and investments than I. So you see he is right.
01:39 PM on 05/08/2012
So, this guy is blaming everyone on earth?!!! Shame on him!
HUFFPOST SUPER USER
Mark Mark
02:24 PM on 06/18/2012
To quote Homer Simpson

"This is everybody's fault but mine"
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HUFFPOST SUPER USER
Joel Petersen
I do desire we be better strangers
01:31 PM on 05/08/2012
A brief sampling from the Checklist of Psychopathy Symptoms:

GRANDIOSE SELF-WORTH — a grossly inflated view of one’s abilities and self-worth, self-assured, opinionated, cocky, a braggart. Psychopaths are arrogant people who believe they are superior human beings.

PATHOLOGICAL LYING — can be moderate or high; in moderate form, they will be shrewd, crafty, cunning, sly, and clever; in extreme form, they will be deceptive, deceitful, underhanded, unscrupulous, manipulative and dishonest.

CONNING AND MANIPULATIVENESS: the use of deceit and deception to cheat, con, or defraud others for personal gain; distinguished from Item #4 in the degree to which exploitation and callous ruthlessness is present, as reflected in a lack of concern for the feelings and suffering of one’s victims.

LACK OF REMORSE OR GUILT: a lack of feelings or concern for the losses, pain, and suffering of victims; a tendency to be unconcerned, dispassionate, coldhearted and unempathic. This item is usually demonstrated by a disdain for one’s victims.

CALLOUSNESS and LACK OF EMPATHY: a lack of feelings toward people in general; cold, contemptuous, inconsiderate, and tactless.

FAILURE TO ACCEPT RESPONSIBILITY FOR OWN ACTIONS: a failure to accept responsibility for one’s actions reflected in low conscientiousness, an absence of dutifulness, antagonistic manipulation, denial of responsibility, and an effort to manipulate others through this denial.
07:42 AM on 05/09/2012
Politicians & Captains of Industry.

Check.

Check.

Check.

etc...
01:27 PM on 05/08/2012
Poor guy I so feel his pain.... Not! So what have we learned from the whole economic disaster? If you rob people with a briefcase instead of a gun you won't be held accountable!
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TheCommons
I didn't quit. You just bored me.
01:16 PM on 05/08/2012
Stop punishing people? When exactly did we start punishing people for creating this mess?
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HUFFPOST SUPER USER
h23154
01:03 PM on 05/08/2012
Weill is a shameless hog, but he does not say in that quote that the public at large was at fault. That's pretty shameful journalism to so grossly distort what he said.
01:00 PM on 05/08/2012
If you like being financially raped and watching your neighbors being financially raped, their homes siezed and really rich immoral nonChristians make pro-rape statements VOTE ROMNEY and you're going to wish GW Bush was president.

Romney is a lobbyists dream puppet. He's got so many hands up his ass now I can't tell who's moving his mouth but everything that comes out of it is pure BS.

He's more frightening than GW ever was. At least with GW we knew he was pro Big Oil and wanted a massive death for profit program in the Middle East. I'm not sure what Romney wants because it's not for him, it's for the hundreds of hands up his ass.

When Americans start figuring out we're not being represented by our government they'll do something about it but right now 48% listen to Sean Hannity and Rush Limbaugh and think it's an educational program. Until that changes Mr. Etcha-Sketch has a chance to buy off the voter machines enough to challenge the Supreme Court for the office.
12:49 PM on 05/08/2012
Poor Sandy Weill!
Having to deal with all that blame and criticism!
If he had the economic burden that the many victims of his policies are suffering, then he might better understand why they have trouble moving on.
But he has been well buffered from the consequences.
So, he just doesn't get the big picture.
12:36 PM on 05/08/2012
For close to 20 years Sanford Weil led the charge to repeal Glass-Stegal. Led. He was outspoken about the issue and his main reasoning was it was holding Citibannk, nor Citi, back from becoming the sprawling monster it did. The first part of which was scooping up Traverlers.

He was one of the drivers behind Gramm-Leach-Bliely which opened the floodgates. Indeed the blame lies at the feet of his ambition. As well at the feet of Phil Gramm and Bill Clinton who should have vetoed GLB.

Sorry Mr. Weil. Some of actually read the papers and followed this throughout.