Cramer on BloggingStocks: The Chuck Prince Citi board has got to go

Posted Jun 9th 2009 9:50AM by Jim Cramer
Filed under: Management, Market Matters, Citigroup Inc. (C), Bank of America (BAC), Cramer on BloggingStocks

From TheStreet.com Network

TheStreet.com's Jim Cramer says the government will want to shed the people who presided over the huge losses.

Sometimes the best course is simply to ask what the government wants. In the case of Citigroup (NYSE: C) (Cramer's Take) it is pretty obvious that the government wants anyone responsible for the previous travesty of corporate governance to get the heave-ho. That means anyone on the board during the Chuck Prince reign.

I think that's reasonable; the government is going to be the largest shareholder, so it makes sense for to want new board members who didn't screw up.

We are now pretty far along in this new style of Obama capitalism, and it is pretty obvious that the ways to get the government off your back are twofold: get real solvent, and get rid of the people who almost made you insolvent if you have to come back for another bite of the apple.

But what I don't understand is how can these board members not want to resign? They are much worse than any of the board members who seem to resign daily from the Bank of America (NYSE: BAC) (Cramer's Take) board.

We have to stop being amazed by the era. You ask for government help the first time, they put strings on it. You ask for government help the second time, they string you up.

Them's the breaks.

The Citigroup board members who presided over the destruction of that once great bank should have to resign the moment the government takes its seat at the table, which should be, alas, this week!

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long BAC.

Tags: bac, bank of america, BankOfAmerica, c, chuck prince, ChuckPrince, citigroup, featured, jim cramer, JimCramer

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Reader Comments (Page 1 of 1)

6-09-2009 @ 11:47AM

BOOWAH said...

What we want to see is the jail cells filling up with corrupt bankers and corporate executives. If a CEO misrepresented the value of his company it's fraud. If a banker gave a loan to someone with no job or collateral. it's fraud. Fraud equals jail time. "GOVERNMENT GET BUSY DOING IT!!! "Or do you want the anarchists to take care of it for you!

6-09-2009 @ 12:10PM

sonnype said...

obama told the CEO of GM he had to go but said nothing about the BOD of citi who almost destroyed the world economy.Tells me who really runs the country.

6-09-2009 @ 4:28PM

Dan said...

I agree. Lets start with the house and senate banking committee chairmen Franks and Dodd. The way they broke FNMA and Freddie Mac earns them an early retirement with no benefits.

6-09-2009 @ 6:02PM

plankton81 said...

Osama obama will never go after the money people, they helped him get elected as did the media companies. Dodd and Frank will be set for life on our dime with no repercussions.

6-10-2009 @ 6:29AM

Fin_Nolimit said...

Ok, ok, ok, you hate Obama... Get over it already and let's make some money! Here's my question... If Citigroup board members step down will this make their stock a "buy, buy buy", or is this just too risky?