Citi should be held accountable, aide says

Bloomberg

"It seems to me that the government ought to demand accountability," including on executive compensation, John Podesta said in an interview on Bloomberg Television’s "Political Capital with Al Hunt," aired Friday..

"If we’re going to have one rule, we ought to apply it to all institutions that we’re taking a look at," Podesta said. "That’s my personal opinion."

In the case of Detroit, lawmakers are demanding from auto industry executives a concrete plan on going forward while others are asking for management changes. The government has not made those demands of Citigroup.

Podesta, a former chief of staff in the Clinton White House, also said Obama would complete "virtually the whole Cabinet" by Christmas, and the new president’s team will reach beyond the Democratic Party.

There will be "multiple Republicans" in the administration," Podesta said. "You’ll see them spread throughout the administration."

Obama is expected to announce his national security team next week. It will be led by Senator Hillary Clinton, his erstwhile rival for the Democratic presidential nomination, as secretary of state and Defense Secretary Robert Gates.

Management changes
Podesta’s comments about seeking reforms from Citigroup echoed those made by Senate Banking Committee Chairman Christopher Dodd, who said Washington should have struck a better deal in its rescue of Citigroup, including management changes and a greater return for taxpayers.

The Federal Reserve, Treasury Department and the Federal Deposit Insurance Corp. on Nov. 23 announced a plan to insure Citigroup against losses on $306 billion of troubled assets and inject $20 billion of capital after the company’s shares plunged more than 60 percent in a week. As part of the plan, Citigroup is required to submit an executive-compensation plan for government approval.

After Congress turned away the heads of the Big Three automakers, Obama and congressional Democratic leaders said financial assistance to General Motors, Ford Motor and Chrysler should be conditioned on a commitment to make their industry more sustainable.

"We need a vital auto industry that’s producing the cars that are necessary for the future - particularly ones that are cleaner, greener and deal with our energy crisis," Podesta said.

He deflected a suggestion made on NBC’s "Meet the Press" by former Secretary of State James Baker on Nov. 23 that Obama and President George W. Bush should collaborate on a major initiative to send a positive signal.

He said the transition and the White House have "an open channel of communications," and Obama is "doing exactly what he should be doing."