Long before too big to fail became a thing, Citigroup and the Federal Reserve often worked together. Traders at the bank would quite often talk and exchange action advice with their ostensibly regulatory overlords. Chummy, sure, but also a necessary working relationship, nothing nefarious, just standard practice.
When funding markets began to freeze up in 2007, Citi was there – at first. One of Wall Street’s biggest names was among the first to jump into the fray, and do so in the manner consistent with current monetary theory.
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