Sandy Weill: Crybaby or Unappreciated Visionary?

Oh Sandy ... get over yourself. That was my initial reaction after reading the article about former Citigroup CEO Sandy Weill that appeared in Sunday's New York Times business section.The article, by Katrina Brooker, was reasonably objective in describing Weill's accomplishment, skills and management flaws, but also made it clear that Weill feels isolated and unappreciated in his retirement. He also stands by his strategy and actions in building Citi into the huge and diverse financial organization it became in the past decade -- an organization that now essentially is being dismantled, as the institution struggles to survive in the post-subprime/credit crisis/TARP world. According to the article:

"During a series of recent interviews, Mr. Weill spoke candidly about the loss, frustration and humiliation caused by Citi's fall. 'I feel incredibly sad,' he says. He remains baronially wealthy, but says he has endured financial pain, too: until a year ago, he says, the bulk of his investment portfolio was split equally between Citi stock and Treasuries. While he acknowledges some of his own mistakes for the Citi debacle, he is also quick to give the back of his hand to his former co-CEO, John Reed, and his successor, Charles Prince. And Mr. Weill vigorously defends his record, rebutting critics who say that Citi was an unstable creation."

Continuing in this vein, Brooker also writes:

"At one point, Mr. Weill had hoped to return and help the company recover and to defend his legacy himself. But the bank no longer has a place or a need for its old C.E.O. Now, Mr. Weill, 76, is trying to move on to a life without Citi. 'It's never going to be the same company that it was,' he said one morning shortly before Christmas."

Weill clearly is trying to reclaim his legacy and seems more willing to blame Citi's problems on the weaknesses of other executives than on flaws in the concept or execution. And, to be honest, once I reread the profile and thought about it I had to concede that Weill's arguments probably have at least some validity. Convergence, cross-selling and diversification continue to appeal to financial organizations striving to grow in an environment where new delivery channels and markets proliferate and where actual financial products and services tend to become commoditized very rapidly.

Does the fact that these strategies have been difficult to achieve mean that they are bad concepts -- or does it mean that as an industry we're still waiting for the tools, regulations and people needed to successfully execute on them? Is Sandy Weill a clueless crybaby or a frustrated visionary who was ahead of his time? In the current environment it's easy to say the former, but it may be a long time before we know the real answer.

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio