How Citigroup Turned Toxic Assets Into Gold

The transcript discusses Citigroup's controversial decision to continue investing in CDOs during the financial crisis, despite significant risks and the need for a bailout. It highlights leadership decisions, risk management strategies, and transactions with the Federal Reserve. The narrative also explores regulatory considerations and market conditions, emphasizing the complexity of financial decision-making during a crisis.

What was Citigroup's approach to CDOs during the financial crisis?

• They only invested in CDOs after the crisis.

• They decided to sell off all CDOs.

• They chose to invest more in CDOs.

• They ignored CDOs completely.

Who was the trading chief at Citigroup responsible for the CDO strategy?

• Michael Corbat

• Jamie Forese

• John Smith

• Chuck Prince

What was the rationale behind Citigroup's decision to continue investing in CDOs?

• They wanted to follow the trend of other banks.

• They had no other investment options.

• They were forced by the government.

• They believed in their expertise and risk management.

From whom did Citigroup purchase a significant amount of CDOs?

• The International Monetary Fund

• The European Central Bank

• The Bank of England

• The Federal Reserve Bank of New York

How might Citigroup's CDO investment strategy differ today compared to 2007?

• It would be less regulated.

• It would be more aggressive.

• It would face stricter regulations.

• It would be exactly the same.