Citi's secret deal with regulators

July 16, 2009 | By Jim Kim

Is there any question about who is running Citigroup? Every passing day brings yet another sign that it is truly a government-run entity--which may not be bad thing in specific cases. The Financial Times reports the ailing bank is on the verge of inking a "secret deal"--not so secret anymore--with regulators that calls for Citi to strengthen its board and governance process, improve asset quality, better manage expenses and provide more information on risk.

The "informal action"--which happens from time to time with problem banks--certainly tightens the grip of the FDIC on the bank. Recall the FDIC had serious concerns about Citi management, to the point that it wanted CEO Vikram Pandit out. What transpired instead: A series of executive moves in quick succession. We'll see how all this plays out.

For more:
- here's the FT article