Michael Corbat on federal debt
From Citigroup CEO Michael Corbat on Economy, Legacy · · David Rubenstein
“I am. I I think we all should be worried about it. I think we've, you know, we've been talking about deficits for a number of years and what is sustainable. I think the um the consequence and the prospect of lower for longer in terms of interest rates obviously significantly reduces or holds down that borrowing cost. But we can't believe that rates are going to stay necessarily where they are forever. So, we've got to be mindful. And that's why I believe that it's actually very important that we're targeted in terms of getting the monies to those that are really in need.”
On , Michael Corbat, Former Chief Executive Officer at Citigroup, spoke about federal debt during Citigroup CEO Michael Corbat on Economy, Legacy on David Rubenstein.
About Michael Corbat
Michael Corbat, who served as Citigroup's CEO from 2012 until his retirement in early 2021, discussed the bank's performance and the broader economic environment during the COVID-19 pandemic in several 2020 appearances. He stated that the bank came into the crisis with a strong balance sheet and that its earnings power was demonstrated by revenue growth and reserve building. Corbat said the pandemic was a public health crisis with severe economic ramifications, not a financial crisis, and that the banking system served as a transmission mechanism for government stimulus. He expressed the view that another round of stimulus was likely needed and should be more targeted, and he described the recovery path as uncertain, stating the bank was prepared for a "V," "U," or "W" shaped recovery. Corbat also noted that negative interest rates, while experienced by the bank in other markets, were not an effective policy tool in his view. Earlier in his tenure, Corbat discussed the bank's efforts on pay equity, stating that Citigroup had disclosed raw pay gaps and worked to improve representation in senior roles. He said the bank had increased the number of women and U.S. minorities on his management team. On trade, Corbat said he was not a believer in trade wars and that the U.S. should be smart about its approach to China. He described Bitcoin as a speculative instrument rather than a currency and said he did not invest in things he did not understand.