Citi Unit Grows -- With Feds' Help

The Wall Street Journal reports:

Even as federal officials move to rein in the nation's biggest banks, one chunk of giant Citigroup Inc. keeps expanding -- with the help of the U.S. government.

Citigroup's Global Transaction Services unit, or GTS, zaps more than $3 trillion around the world each day for hundreds of corporations and dozens of governments and agencies, including the Federal Reserve. It converts currencies for the Fed, processes all passport applications for the U.S. government and handles U.S. military payments to Iraqi contractors.


The political winds are blowing stiffly against giant banks these days, as their "too big to fail" status galls much of the public and many in Congress. Federal officials have pushed Citigroup executives to radically downsize the company. The House has just passed a bill that would empower Washington to break up big banks even if they're healthy, if they are deemed to pose a risk to the overall financial system.

The Fannie Mae ethics come to Citibank. Great moments in national socialism.