My bet is that lots of folks on Citi's Board of Directors is going to get fired for approving silly executive comp, stupid incentives and most especially the risk committee.
It wasn't that they weren't doing what everyone else was doing. It's just that they didn't do what they were being paid to do. When that happens any place else in the pyramid, they get fired. Now that they got forced into accepting debt from a bunch of grown ups, they have to stop by too busy to do the jobs they are paid to do.
It's going to get interesting to see if the institutional investors and hedge funds get the message that is ok to act like a grown up, once the funny money disappears. Plus I figure that they'll have the cover to act like grownups, once the federales make the move.
It should be an interesting meeting today. Given that Anne Mulcahey is on the Citi Board of Directors, maybe we'll hear the story from an inside source. Given that Chuck Prince is on the Xerox Board of Directors, if anyone understands how this happened over there, it should be Chuck and Anne. Maybe they'll learn from those mistakes and fix Xerox.