The Terra Firma tycoon Guy Hands has been accused of attempting to run a “shakedown” against Citigroup and its former chief executive, Chuck Prince, in his attempt to recover massive losses from his disastrous acquisition of EMI.
The memo landed on a Sunday in November. It was 2007, and securities backed by subprime mortgages were roiling markets and imperiling banks. Merrill Lynch CEO Stan O’Neal had just resigned under pressure, and Citigroup CEO Chuck Prince was rumored to be on his way out.
When Chuck Prince was CEO of Citigroup from 2003 to 2007, he didn’t know about a surge in mortgage risk that his own investment bankers loaded on to its bank’s books.
We're busy (at last) wading our way through The Financial Crisis Inquiry Report in search of little gems.