Take physic, pomp

Citigroup (C): Mexico moves the goalposts

And so Citigroup can likely keep Banamex, according to Mexican gov’t politicos that have just earned themselves a “one large favour owed to me” card (and will surely know how to use it). Reuters translates the moneyline which is being used….

“The law does not cover emergencies derived from the global crisis”
…..which is, of course, a total affront to logic and commonsense. Y’see according to Mexican lawmakers the clear legal statute that does not allow any foreign government to hold more than 10% of a bank doing trade in Mexico suddenly doesn’t count because……because….because the US gov’t didn’t WANT to buy 36% of Citigroup ….and that makes it different. Cos they said so. And that national laws go out the window and Mexican pants are dropped to US pressures isn’t really news. After all, it’s greedy human beings we’re dealing with here so logic obviously has to take a back seat. I’ll just shrug my shoulders and scrunch my brow a bit and go “waddya expect?”.

Bloomberg does a good job of explaining the outcome of the Mexican mental and legal gymnastics that lawmakers have gone through to get to this point. Here’s the link worth reading. The only thing lacking from both Reuters and Bloomie’s reports are meaningful opposition quotes and positions. Bloomie has…….

“If it’s a proposal that helps, that doesn’t infringe against the sovereignty, the nationalism and the interests of Mexico, I say it should be approved. If it infringes, we’re going to dispute it.”

…….from an opposition PRD flunkey and Reuters hints at previous “pressure from nationalists”, but the comments are low key. This is strange, because this story will create open season on a Felipe Calderon (allegedly) selling out la patria to the gringos. Lopez Obrador and company will milk this one for all it’s worth; and it’s worth a lot. Calderon gets the piñata treatment as of tomorrow morning.

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