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Citi Under Attack: Today's Outrage

As Goldman Sachs and JPMorgan start to show some spine, Citi remains cowed by legislators and faces a renewed attack.
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) --


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is about to take a beating.

Former top brass at Citi, including Chuck Prince and Robert Rubin, are expected to be put through the ringer by the Financial Crisis Inquiry Commission, which is treating Citi as a poster child for everything that went wrong during the mortgage meltdown and subsequent global financial collapse, according to the



You see, Citi was on both sides of many of the ill-fated transactions as both a subprime mortgage lender and purchaser of mortgage-related derivative securities.

Fireworks are on the agenda as panelists confront Citi officials with their own emails and memos found among a million pages of Citi documents under scrutiny, the AP reported.

This promises to be a wonderful witch hunt, keeping alive the new reality television spectacle of parading the nation's financial leaders and their regulatory counterparts before various Congressional panels and special investigators.

I love the hypocrisy of the wise and powerful legislators and their designated attack dogs who -- in hindsight -- have finally thought up all the questions they should have been asking long before the crisis hit.

It's also fascinating to watch the banking industry slowly start to lift its head and stiffen its spine.

Goldman Sachs

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issued an absurdly long letter to shareholders today, seeking to present itself as the champion of its clients as it explained its relationship with


(AIG) - Get American International Group, Inc. Report

and the successful bets it made against the mortgage market. (TheStreet's Dan Freed provides more context on the letter in his piece today called

Goldman's Apologia


JPMorgan Chase

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is acting out with even more brashness as CEO Jamie Dimon haunts the halls of Congress voluntarily to campaign against new banking regulations, according to the

Wall Street Journal


Having fully repaid taxpayers with interest on all the bailout money they received, JPMorgan and Goldman Sachs are clearly feeling more empowered to exercise their right to freedom of expression.

Sadly for Citi, the government still seems to have the one-time banking leader cowed.

--Written by Glenn Hall in New York.

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