The only thing we learn from history is…
Pandit,Citigroup CEO blamed short selling rather than any self-inflicted weakness for the bank’s near-collapse in 2008. Did i heard him wrong?
If it was just short-selling, the temporary ban implemented during the crisis should have solve Citi’s problem, apparently it didn’t help as Citi’s problem is its solvency due to a weak balance sheet.
He is not alone in learning the wrong lessons from history. GIC also did too. They still boldly stated that UBS is a solid long term investment despite blowing billions of dollars on a private banking franchise that is under stress now.
Well, GIC is supporting Prudential in buying AIA. Will they learn the right lessons from UBS and various misadventures?
The only lesson we learn from history is that we do not learn from history. Keep your fingers crossed that GIC and Citi can buck the trend.
Entry filed under: Watch your step.