People tried to warn Geithner and President Obama. You put restrictions on the earnings of the “best and brightest” in the Financial Services business, or pass 90% taxes for making too much money, the only effect is the people will move to Dubai, beyond your ability to tax or regulate them.
WSJ is reporting today that Mohammed Shroogi, the head of Citigroup’s “Islamic Banking” unit is quitting. He’s worked for Citi for 30 years and works in the Middle East. Citigroup is not an “American” bank, it’s a global financial services company. Mr. Shroogi has been hired by Investcorp, which is located in Bahrain. He won’t be the last.
CitiGroup is announcing they will be raising the base salaries of their most important employees by up to 50% to offset the loss of their bonus income.