This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Citigroup, JPMorgan, in Bizarre Small Bank Love Triangle: Street Whispers

Asked if Dimon is his first choice, Fine said the ICBA doesn't have a first choice but would be happy with most of the possible Treasury Secretary candidates whose names have been surfaced in the media since the Presidential election, including White House Chief of Staff Jack Lew, possibly the most often talked about potential nominee to replace the outgoing Tim Geithner.

But at least as odd as the ICBA's endorsement of Dimon last week was hearing Citigroup executive James Garnett lobby Congress on behalf of community banks.

Speaking before the House Financial Services Committee in a hearing on the proposed capital rules known as Basel III, Garnett said the regime "poses greater operational and compliance challenges for community banks than for large banks." In fact, Garnett devoted about 10% of hid prepared testimony to defending the interests of community banks.

It is not uncommon for the big banks to use small banks for cover to promote their own agenda, as they did lobbying against lower debit card swipe fees under the Durbin Amendment. In this instance, however, Citigroup seemed to be saying it could handle tougher rules than the smaller banks.

So thoughtful of you, Citigroup, but what do you expect in return?

That's hard to say. Though ICBA Chairman-elect William Loving, President and CEO of Pendleton Community Bank, in Franklin, WV, testified at the same hearing as Citigroup's Garnett, Fine said he was entirely unaware of Garnett's kindness--even a day after the hearing. He didn't even know who Garnett was, he said.

A Citigroup spokeswoman wrote via email that "the Committee's invitation letter specifically asked Jim to address capital requirements for banks of different sizes and types in his testimony."

Okay, that's fine, bankers, but let's try and bring back the hate in the New Year.

-- Written by Dan Freed in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
C $53.20 0.00%
JPM $63.24 0.00%
AAPL $127.60 0.00%
FB $83.09 0.00%
GOOG $535.38 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs