Infighting

TARP Exits Cause Friction

Despite the supposed good news that Citigroup and Wells Fargo planned to leave the shelter of TARP this week, the two banking giants' stock sales led to infighting and finger-pointing between bank executives, regulators, and federal officials over the financial health of the institutions and where blame lies for Citigroup's anemic performance in its Wednesday sale. Citigroup Vice Chairman Ned Kelly made an angry call late Monday to the Treasury Department, expressing frustration with the government's willingness to let Wells Fargo sell their stocks Tuesday and saying that the sale would lower demand for Citigroup stocks. Treasury officials said Citigroup dug its own grave, and its ambitious plan for the Wednesday sale was their own doing.