Just by this deal Citigroup will have lost roughly 10 billion within 1 year. Two people in charge of those deals were Robert Rubin who earned 126 mil in eight years at Citi and Pandit who got a total of 200 mil. from Citi ( including the sale of his worthless Hedge fund to Citi). Both made a fortune from Citi while participating in steps which helped to put Citigroup in bankruptcy. The 800 mil for the Hedge Fund have been written off completely as the Fund is closed and the completion of the Japanese entity will cost around 10 bil.
Under the Rubin / Prince times Citi acquired toxic assets which have lost around 50 bil officially but according to my calculations the real amount is rather 300-400 bil. The US government has guaranteed for around 100 bil. after pumping in aprox. 60 bil (including AIG payments) and that's not the end of the story. In my book that's reckless and even criminal as they have exposed the stock owners capital to an insane leverage and the managers of Enron have been prosecuted for he same kind of thing but that does not seem to happen to buddies of President Clinton.
It wasn't clear how much Sumitomo Mitsui has agreed to pay for the Citigroup operations, but the amount is likely to be a fraction of the ¥1.6 trillion Citigroup paid for Nikko Cordial in a series of deals completed in 2008. The Nikkei business daily reported Tuesday the price tag for the deal was over ¥500 billion. The sale doesn't include Nikko Asset Management, which is being offered in a separate deal.
In a move interpreted as a preparation for a possible high-priced acquisition, Sumitomo Mitsui has announced plans to raise as much as ¥800 billion by issuing new shares.
On December 11, 2007, Pandit was named the new CEO of Citigroup, replacing interim-CEO Sir Winfried Bischoff, who became chairman of the board as well as remaining CEO of Citigroup Europe. Interim chairman Robert Rubin strongly supported Pandit, who is the effective successor to Chuck Prince. Prince resigned in November 2007 due to unexpectedly poor 3rd-quarter performance, mainly due to CDO- and MBS-related losses. While CEO of Citigroup in 2007, Vikram S. Pandit earned an annualized compensation of $3,164,320, which included a base salary of $250,000, stocks granted of $2,914,320, and options granted of $0. In 2008, he earned a total compensation of $38,237,437, which included a base salary of $958,333, stocks granted of $28,830,000, and options granted of $8,432,911.Citigroup subsequently purchased the poorly performing fund in 2007 for $800 million. Pandit received approximately $165.2 million for this transaction.
Robert Edward Rubin (born August 29, 1938) served as the 70th United States Secretary of the Treasury during both the first and second Clinton administrations. Before his government service, he spent 26 years at Goldman Sachs. His most prominent post-government role was as Director and Senior Counselor of Citigroup, where he performed ongoing advisory and representational roles for the firm. From November to December 2007, he served temporarily as Chairman of Citigroup. On January 9, 2009 Citigroup announced his resignation, after having been criticized for his performance. He received more than $126 million in cash and stock during his eight years at Citigroup.
On Sunday, 4 November 2007, Prince resigned from his post as CEO of Citigroup due to the failing mortgage industry. He was replaced by Vikram Pandit as the current CEO of Citigroup , and by Robert Rubin as its Chairman.
Prince left with vested stock holdings valued at USD$94 million and the roughly $53.1 million salary he received over the four years in the position. He also received a pension of $1.74 million and another one million stock options. He is still a consultant with Citigroup.In 2008, Fortune named Charles Prince as one of eight economic leaders "who didn't [see] the crisis coming", noting his overly optimistic statements in July 2007. In January 2009 Guardian City editor Julia Finch identified him as one of twenty five people who were at the heart of the financial meltdown.