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Wall Street Roundup: Fed accused of Ponzi scheming, Citi's former CEO looks back

October 28, 2010 |  9:02 am

Good jobs news. The number of new claims for unemployment benefits dropped to its lowest level in three months, but it didn't help markets jittery about the economy and the Federal Reserve's response.

Fast and loose at the Fed. PIMCO's bond whiz Bill Gross said that the Federal Reserve's effort to help the economy with Treasury bond buying is little more than a Ponzi scheme that will do little to help the economy. His critical comments come a day after those of another investing giant, Jeremy Grantham.

Citi CEO reflects. Citigroup's former Chief Executive John Reed has fled the corporate world and says that the financial crisis was caused by a corporate culture that remains.

Newark looks to Wall Street. Hedge fund maverick Bill Ackman is the latest figure from the business world to throw his money behind Newark Mayor Cory Booker's vision of renewal for the downtrodden city.

-- Nathaniel Popper