More chicanery at Lehman Brothers (LEH) and Citigroup (C)

The CFO and COO of Lehman (LEH) are out.  This is not shocking.  I am surprised the CEO is keeping his job. 

Citigroup (C) is shutting down a hedge fund that it purchased last year for more than $800 million.

If your business is reliant on trading profits from proprietary trading, shouldn't the management team understand risk?  If you cannot assess what your risk is at any given time, you should not be in a trade.  Time and time again, we are seeing that these people don't understand risk.  Their knowledge of how large the losses will be is opaque, at best.

Non-traders are running trading shops.   Stay away from Citigroup (C) and Lehman Brothers (LEH) unless you are prepared for a repeat of Bear Stearns (BSC).

Joel Stahl

Comments

[Todd Horton]

dating your posts would be a big help, I just drop in from time to time.

[Scott J]

All posts are automatically date and time stamped at the bottom of each post. Just need to scroll down. Thanks.