Citi Tries to Manage Rubin’s Reputation
Charlie Gasparino–no friend of Robert Rubin’s–went on CNBC this afternoon and read from “sources close to the matter” that Rubin had three conditions for taking more risk: 1) the right people; 2) the right technology; and 3) the right oversight.
When asked, Gasparino goes to great lengths to say that the comment did not come from Rubin. He goes on to draw a line around Rubin’s actions at Citi by defining his role as providing advice and counsel.
What’s so striking about this is the way it increases the questions about Rubin’s role. Someone is giving Rubin bad publicity advice because this statement just propels the story forward. Notice Gasparino’s demeanor. He wants to get the report over with. Then he leaves the door open with his closing comment: “developing.” In other words, the clarification from Citi about Rubin’s role is only going to send Gasparino–or someone else–digging for evidence of Rubin’s responsibility.
Now Rubin is famous for being hard to pin down on almost anything. But that just dangles a bigger prize in the game of gotcha. And to think it was looking like Rubin would be forgotten in all the attention paid to the bailout.
November 25th, 2008 at 7:06 pm
BG Says:
November 25th, 2008 at 5:57 pm
Well, well, well….I hope you all saw CNBC & Mr. CG blink this Evening at 5:25EST on Fast Money. It proves that if CNBC goes too far in communicating “their view” and as a result gets threatened, they will (even if reluctantly so) provide the rest of the story. IMO, that is exactly what happened.
It is obvious to me that advocates of Bob Rubin (possibly Robert Rubin, himself) laid down the gauntlet to CNBC (in terms they clearly understood) for their reporting of Citi’s decision to take on a greater risk profile in past years and Rubin’s input into that decision.
Sunday night, CG painted the story that it was all the making of Bob Rubin. Well, scratch that! I enjoyed Charlie’s recant very much, not for what he said; but, for what I know took place behind the scenes. It’s about damn time! Like a plain ‘ole Country TV Viewer, it was just splendid!
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Barry, thanks for covering this. It would be great if you could get a clip of CG’s rant against Rubin last Sunday night. That would be alot of fun for the sake of comparison.
November 25th, 2008 at 7:12 pm
I get a sense it is not so much Citi trying to manage Rubin’s reputation and more on CNBC trying to clean up their own irresponsible reporting of the story.
November 25th, 2008 at 8:10 pm
Back in 1997 a woman Bradsley Born tried again and again to get Greenspan et al to reign in some of these exotic thingy’s but was shot down time and again by Greenspan, Rubin and Summer’s. If you google her its a good read.
In the meantime we need to get Rubin and Summer’s out of the loop.
66
November 25th, 2008 at 10:06 pm
@BG
Here’s the link to your Sunday night clip: http://www.cnbc.com/id/15840232?video=937267845
But you should look at Gasparino’s appearance a few minutes later on Fast Money where he hardly seems contrite.
November 26th, 2008 at 8:50 am
@Route66
I think you mean Brooksley Born.
And, yes, she warned of the derivatives time bomb back in ‘97. In May of ‘98 the President’s Working Group, Greenspan & Rubin, rejected her report on the derivatives market and it’s need for regulation and an exchange. Good judgment by the wizards of smart.