Michael Corbat on fiscal policy
From Citigroup CEO Michael Corbat on Economy, Legacy · · David Rubenstein
“I think if we don't get something done um right now, I think we will get something done in probably fairly early 2021. And I think the question's not going to be the if, but I think it's going to be more about the size and what can get get passed. And I think that will, you know, be largely determined by the outcome of the Senate races in Georgia. I think right now, with COVID-19 cases on the rise, additional stimulus uh through unemployment checks, PPP loans, rebates are all helpful tools to bolster bolster the economy and uh while also helping individuals to recover from the economic hardship of the pandemic experience.”
On , Michael Corbat, Former Chief Executive Officer at Citigroup, spoke about fiscal policy 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.