Who is responsible for the financial disaster at Citigroup (C)? Sandy Weill and Robert Rubin, who created the company? Former CEO Chuck Prince, who made a number of decisions, or, put another way, made very few decisions that let his managers put dangerous assets on the balance sheet? Or Vikram Pandit, who has run the company for a year-and-a-half and has been slow to cut costs and sell assets to build the balance sheet?
To a large extent, it is none of the above. Many of Citigroup's directors have been on the firm's board for years. They have had the responsibility to oversee bank management activity. The board even had a risk management committee, which was meant to ask questions about the safety of bank risk procedures.