Dictators' Savings & Loan

Investigators fault Citigroup's private bankers

Citigroup's specialized private banking division, which has 40,000 clients, each holding more than $3 million in assets, has produced a wealth of headaches in recent years. And this week's migraine could be especially severe for John Reed, Citigroup's co-chairman. He's being hauled before the Senate's Permanent Subcommittee on Investigations to explain the bank's oversight of accounts controlled by a gallery of international reprobates and dictators. All kept tidy sums in Citi vaults; some of it was rightfully theirs.

A report prepared by subcommittee Democrats and obtained by TIME says the private bank repeatedly broke many of its own rules in handling...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!