The alarming, untold story of Citigroup--one of the largest financial
institutions in the world--from its founding in 1812 to its role in the
2008 financial crisis, and the many near-death experiences in between.
During the 2008 financial crisis, we were told that Citi was a victim of
events beyond its control--the larger financial panic, unforeseen
economic disruptions and a perfect storm of credit expansion and private
greed. To save the economy and keep the bank afloat, the government
provided huge infusions of cash through multiple bailouts that
frustrated and angered the American public.
But, as Wall Street Journal writer James Freeman and financial expert
Vern McKinley reveal, the 2008 crisis was just one of many disasters
Citi has experienced since its founding more than two hundred years ago.
In Borrowed Time they reveal Citi's disturbing history of instability
and government support. It's a story that neither Citi nor Washington
wants told.
Citi has long been tied to the federal government in a relationship that
has benefited both. From its earliest years, its well-connected
leadership--most of its initial stockholders had owned stock in the Bank
of the United States--took massive risks that led to crisis. But thanks
to a rescue by private investors, including John Jacob Astor, the bank
survived throughout the nineteenth century.
This is just the tip of the iceberg. The scale of the financial panic of
2008 was hardly unprecedented. As Borrowed Time shows, crisis and
outright disasters have been surprisingly common during the century of
government-protected banking--especially at Citi.
