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The fall of the citibank

12 januari 2008, 09:00 | US Markets Redactie | leestijd: 2 minuten | moeilijkheid: 7 / 12 | (0)


CITIBANK

–Here’s a sto­ry that’s flown under the radar. Citibank is in seri­ous trou­ble. You prob­a­bly already knew that, giv­en the fact the banks’ been beg­ging for bil­lions from SWFs. But did you know that in late Decem­ber Citibank qui­et­ly announced a restric­tion on wire trans­fers? The bank told cus­tomers that out­go­ing wire trans­fers from the banks accounts would be lim­it­ed to just US$2k per day. Hmmn. 

–But wait. There’s more. Last week, under the guise of respond­ing to a wave of fraud from auto­mat­ed cash machines, Citi also announced a lim­it on cash with­drawls from its ATMs in New York City. And you thought the mon­ey in your bank account was yours. 

–There could be a per­fect­ly rea­son­able expla­na­tion for all of this. But the sim­plest expla­na­tion is almost always the best. Citibank is in des­per­ate need of its cap­i­tal. The best way to keep your cus­tomers mon­ey is to pre­vent them from tak­ing it out of the bank. It’s a kind of low-lev­el, mild-man­nered cap­i­tal con­trol. That will be the sec­ond bank. 

Almost every­one was hap­py that com­mu­nisme has failed but it was for­got­ten to keep in mind that cap­i­tal­isme could fail too espe­cial­ly when one for­get that human beings are social beings liv­ing in a social order. Social­ists failed too because there thoughts were cen­tral­ized and it was for­got­ten to repeat end­less­ness that feel­ing respon­si­ble for some­one was a main issue. To my opin­ion cap­i­tal­isme’ is now on his turn­ing point which does not mean that mak­ing busi­ness will be out of order but the view under­ly­ing it, name­ly that every­one is respon­si­ble on his own. That view has turned the pub­lic domain into a no go area’. Par exam­ple: Crim­i­nal­i­ty seems to be accept­ed as a devi­a­tion of a time moment not as a cause of a social dis­or­der or it is con­sid­ered as a fail­ure of the bio­log­i­cal sys­tem. What has hap­pened is that the social disaorder has acti­vat­ed the bio­log­i­cal sys­tem of some beings in such a way that they behave them­selves crim­i­nal-like. As a mat­ter of fact, every aspect of life must be showed at tv, nev­er mind the con­se­quences of it. It is for­got­ten that it affects the behav­iour like tak­ing over the atti­tude towards solv­ing prob­lems: blow it up agres­sive­ly seems to be quite nor­mal now. Stu­dents are aston­ished when telling them that one is a social uni­ty with­in a social mul­ti­plic­i­ty as an exam­ple I gave them the next: you have to under­stand the the­o­ry on your own but one also needs sup­port of the oth­ers. It seems that they grew up with the idea that you will have to do it on your own behind a com­put­er and mak­ing prof­it of every­thing in life nev­er mind what. 


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