Tuesday, November 30, 2010

'Still Dancing'

Speaking of the memory hole, I suspect this one from July of 2007 won't drain for a while:

Citigroup’s chief executive, Charles O. Prince, says his bank hasn’t pulled back from making loans to provide funds for private equity deals, despite a skittish credit market and concerns that the recent run of big buyout deals could be losing steam.

But Mr. Prince used an interesting metaphor to describe his company’s situation as a major provider of financing for leveraged buyouts. “As long as the music is playing, you’ve got to get up and dance,” he told The Financial Times on Monday, adding, “We’re still dancing.”

Is Mr. Prince suggesting that leveraged lending is, on some level, a command performance? (1)

No, not a command performance. Just the way Wall Street works, maximizing profit for the next quarter. Then get bailed out if the ship rounds aground.

I'm guessing the music has begun again, and we're on a new dance.
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What ever happened to Chuck ?

Well , according to Wikipedia: "Prince is currently Vice-Chairman of Stonebridge International and serves in the influential trade group the Financial Services Forum, as well as a member of the Council of Foreign Relations, the Business Roundtable, and several other organizations."

and

"On November 4, 2007 he retired from both his CEO and chairman duties due to unexpectedly poor 3rd quarter performance, mainly due to CDO and MBS related losses, while still receiving a $38m pay package."

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But most definitely the biggest problem in the United States is lack of accountability for high school English teachers.

1'Citi Chief on Buyouts: ‘We’re Still Dancing’- - NYT, July 2007

1 comment:

The Arthurian said...

“As long as the music is playing, you’ve got to get up and dance.”

I think Chuck was telling the truth, there. But I prefer a "musical chairs" analogy. When the music stops...

Chuck is only doing what business is expected to do. The failure is government's. And the people's.

p.s. I really liked your Wesley Clark post.