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Citigroup Inc. (Citicorp)

Self Description

July 2005: "Citigroup Inc. is today’s pre-eminent financial services company, with some 200 million customer accounts in more than 100 countries. Our history dates back to the founding of Citibank in 1812, Bank Handlowy in 1870, Smith Barney in 1873, Banamex in 1884, and Salomon Brothers in 1910.

Other major brand names under Citigroup's trademark red umbrella include Citi Cards, CitiFinancial, CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Asset Management, The Citigroup Private Bank, and CitiCapital...

Business Histories
The timelines represent the history of each business until it joined the Citigroup family.

  • Bank Handlowy w Warszawie SA
  • Citibank, N.A.
  • European American Bank
  • Golden State Bancorp Inc. & California Federal Bank
  • Grupo Financiero Banamex
  • Salomon Brothers
  • Schroder & Co. Inc.
  • Smith Barney
  • The Associates"

Third-Party Descriptions

January 2013: 'A month or so after the bailout team called the top nine banks "healthy," it became clear that the biggest recipient, Citigroup, had actually flat-lined on the ER table. Only weeks after Paulson and Co. gave the firm $25 billion in TARP funds, Citi – which was in the midst of posting a quarterly loss of more than $17 billion – came back begging for more. In November 2008, Citi received another $20 billion in cash and more than $300 billion in guarantees.'

December 2010: "None of the three clearinghouses would divulge the members of their risk committees when asked by a reporter. But two people with direct knowledge of ICE’s committee said the bank members are: Thomas J. Benison of JPMorgan Chase & Company; James J. Hill of Morgan Stanley; Athanassios Diplas of Deutsche Bank; Paul Hamill of UBS; Paul Mitrokostas of Barclays; Andy Hubbard of Credit Suisse; Oliver Frankel of Goldman Sachs; Ali Balali of Bank of America; and Biswarup Chatterjee of Citigroup."

June 2010: "So it was unusual when a knockout in New York, Debrahlee Lorenzana, a 33-year-old single mother, filed suit against Citigroup, claiming that she was fired in August from the Citibank branch at the Chrysler Center for looking too sexy."

May 2010: "The New York attorney general has started an investigation of eight banks to determine whether they provided misleading information to rating agencies in order to inflate the grades of certain mortgage securities..."

February 2010: 'When Goldman Sachs and Morgan Stanley got their federal bank charters, they joined Bank of America, Citigroup, J.P. Morgan Chase and the other banking titans who could go to the Fed and borrow massive amounts of money at interest rates that, thanks to the aggressive rate-cutting policies of Fed chief Ben Bernanke during the crisis, soon sank to zero percent. The ability to go to the Fed and borrow big at next to no interest was what saved Goldman, Morgan Stanley and other banks from death in the fall of 2008. "They had no other way to raise capital at that moment, meaning they were on the brink of insolvency," says Nomi Prins, a former managing director at Goldman Sachs. "The Fed was the only shot."'

July 2009: "The figures released on Thursday by the New York attorney general, Andrew M. Cuomo, provided the most detailed accounting yet of Wall Street’s millionaire ranks. In the report, Mr. Cuomo said that 738 bankers and traders at Citigroup took home bonuses of $1 million or more in 2008 even as the bank posted a $27.7 billion loss. In all, Citigroup paid $5.33 billion in bonuses; it received $45 billion in bailout funds."

July 2009: "Two firms, Citigroup and Merrill Lynch, suffered losses of more than $27 billion each but paid out $5.3 billion and $3.6 billion in bonuses, respectively, the report noted. Together, they have received TARP funds totaling $55 billion."

July 2009: "Then on Friday, Citigroup and Bank of America — two of the great basket cases of the meltdown — reported outstanding numbers, too."

June 2009: "Rising Default Rates Banks are cutting limits in the face of a deteriorating economy. U.S. credit-card default rates reached record highs in May, near or even above 10% for Bank of America (BAC), American Express (AXP), Citigroup (C), and Capital One (COF), according to Reuters. The worsening unemployment situation is causing banks to worry that even good customers could quickly become risky customers. As a result, the companies are preemptively slashing credit lines, especially those that aren't being used."

April 2009: "Citigroup, meanwhile, has been in discussions with the Treasury over overhauling its compensation system for traders and other employees, a person close to the talks said, as the bank awaits the government’s new compensation rules. Among the ideas discussed have been issuing warrants, permitting employees to buy stock rights at steep discounts and exempting traders from the new rules."

January 2009: "WASHINGTON — In a move that would help troubled homeowners, Citigroup agreed to support legislation that would let bankruptcy judges adjust mortgages for at-risk borrowers, leading Congressional Democrats said on Thursday."

December 2008: "like thousands of other credit card customers around the nation, he has been notified his rate is skyrocketing....Citigroup seems to be the target of most bloggers' venom -- partly because Citigroup issues so many credit cards and partly because Citi began sending the notices at about the same time it was getting a $20 billion, taxpayer-financed government bailout."

December 2008: 'Tribune’s board was advised by a group of bankers from Citigroup and Merrill Lynch, which walked off with $35.8 million and $37 million, respectively. But those banks played both sides of the deal: they also lent Mr. Zell the money to buy the company. For that, they shared an additional $47 million pot of fees with several other banks, according to Thomson Reuters. And then there was Morgan Stanley, which wrote a “fairness opinion” blessing the deal, for which it was paid a $7.5 million fee (plus an additional $2.5 million advisory fee).'

November 2008: 'The proposed $351 billion Citigroup (nyse: C - news - people ) bailout....It's the kind of breathtakingly poor management at Citi that moved the New York Post--hardly a banner-carrier for the Nader Raider types--to run a rare front-page editorial yesterday branding the destitute bank "Citi of Fools" and demanding the resignation of its board of directors.'

November 2008: "Citigroup was involved in, and made money from, almost every link in that chain. And the bank’s executives, including, sad to see, the former Treasury Secretary Robert Rubin, were clueless about the reckless financial instruments they were creating, or were so ensnared by the cronyism between the bank’s risk managers and risk takers (and so bought off by their bonuses) that they had no interest in stopping it."

October 2008: "The Associated Press reported that nine financial companies it surveyed--Citigroup (nyse: C - news - people ), Bank of America (nyse: BAC - news - people ), Goldman Sachs (nyse: GS - news - people ), Morgan Stanley (nyse: MS - news - people ), JPMorgan Chase (nyse: JPM - news - people ), Merrill Lynch (nyse: MER - news - people ), Bank of New York Mellon (nyse: BK - news - people ), State Street (nyse: STT - news - people ), and Wells Fargo (nyse: WFC - news - people )--had compensation-related expenses of $108 billion in the first three quarters of the year. That's 3% higher than in the first nine months of 2007, says the AP."

March 2008: 'Indeed, their shareholders would punish them if they sat out the next round—as Chuck Prince let slip only weeks before the crisis struck, when he said that Citigroup, the bank he then headed, was “still dancing”. Mr Prince has been ridiculed for his lack of foresight. In fact, he was guilty of blurting out finance's embarrassing secret: that he was trapped in a dance he could not quit. As, in fact, was everyone else.'

October 2007: "A divided federal appeals court ruled yesterday that a human rights lawsuit filed against 50 major corporations that did business in South Africa under apartheid should be revived and reconsidered by the lower court that dismissed it.... The plaintiffs sued the corporations — among them Citigroup, General Electric, E. I. DuPont de Nemours, I.B.M., General Motors, Shell Oil and ExxonMobil — under the Alien Tort Claims Act..."

June 2007: For instance, Citigroup Inc. recently announced it would stop a controversial practice called 'universal default.' Under the practice, if a customer's credit quality deteriorated with another creditor – say, because of failure to make a timely payment on a car loan – the bank would raise its interest rate on his or her credit card.


RoleNameTypeLast Updated
Member of (past or present) Bankruptcy Coalition Organization Jan 9, 2009
Owner of (partial or full, past or present) Citibank Organization Aug 11, 2005
Owner of (partial or full, past or present) Citigroup Global Markets Organization Nov 17, 2004
Owner of (partial or full, past or present) Diners Club International Organization May 30, 2006
Opponent (past or present) Inner City Press (ICP) Organization Feb 24, 2008
Owner of (partial or full, past or present) Morgan Stanley Smith Barney Organization Apr 26, 2011
Director/Trustee/Overseer (past or present) Alain J. P. Belda Person May 25, 2007
Organization Executive (past or present) Elaine L. Chao Person Nov 7, 2005
Director/Trustee/Overseer (past or present) Andrew N. Liveris Person May 25, 2007
Organization Head/Leader (past or present) Charles "Chuck" O. Prince III Person Apr 6, 2008
Organization Head/Leader (past or present) John S. Reed Person Oct 18, 2003
Director/Trustee/Overseer (past or present) Organization Head/Leader (past or present) Robert "Bob" E. Rubin Esq. Person Apr 6, 2008
Organization Executive (past or present) Lawrence "Larry" M. Small Person
Organization Head/Leader (past or present) Sanford I. Weill Person
Organization Head/Leader (past or present) Robert B. Willumstad Person Jun 2, 2005

Articles and Resources

66 Articles and Resources. Go to:  [Next 20]   [End]

Date Resource Read it at:
Jan 04, 2013 Secret and Lies of the Bailout:The federal rescue of Wall Street didn’t fix the economy – it created a permanent bailout state based on a Ponzi-like confidence scheme. And the worst may be yet to come

QUOTE: Not only did [the 2009 banking system bailout--Ed.] prevent another Great Depression, we've been told, but the money has all been paid back, and the government even made a profit. No harm, no foul – right? Wrong. It was all a lie – one of the biggest and most elaborate falsehoods ever sold to the American people. We were told that the taxpayer was stepping in – only temporarily, mind you – to prop up the economy and save the world from financial catastrophe. What we actually ended up doing was the exact opposite: committing American taxpayers to permanent, blind support of an ungovernable, unregulatable, hyperconcentrated new financial system that exacerbates the greed and inequality that caused the crash, and forces Wall Street banks like Goldman Sachs and Citigroup to increase risk rather than reduce it. The result is one of those deals where one wrong decision early on blossoms into a lush nightmare of unintended consequences.

Rolling Stone
Feb 08, 2012 States Negotiate $26 Billion Deal for Homeowners

QUOTE: After months of painstaking talks, government authorities and five of the nation’s biggest banks have agreed to a $26 billion settlement that could provide relief to nearly two million current and former American homeowners harmed by the bursting of the housing bubble, state and federal officials said. It is part of a broad national settlement aimed at halting the housing market’s downward slide and holding the banks accountable for foreclosure abuses.

New York Times
Apr 23, 2011 A Crack in Wall Street’s Defenses

QUOTE: “Citigroup mismarketed this product to high-net-worth investors as an alternative to municipal bonds with a slightly higher return… Our clients never knowingly agreed to risk a significant loss of principal for a few extra points of interest.”

New York Times
Apr 12, 2011 The Real Housewives of Wall Street

QUOTE: What they don't know is that there is another budget of roughly equal heft, traditionally maintained in complete secrecy... It is as though someone sat down and made a list of every individual on earth who actually did not need emergency financial assistance from the United States government, and then handed them the keys to the public treasure.

Rolling Stone
Dec 11, 2010 A Secretive Banking Elite Rules Trading in Derivatives

QUOTE: Drawn from giants like JPMorgan Chase, Goldman Sachs and Morgan Stanley, the bankers form a powerful committee that helps oversee trading in derivatives, instruments which, like insurance, are used to hedge risk. In theory, this group exists to safeguard the integrity of the multitrillion-dollar market. In practice, it also defends the dominance of the big banks.

New York Times
Jun 04, 2010 Dressed to Distract

QUOTE: Aesthetic allure is evolutionary...So it was unusual when a knockout in New York, Debrahlee Lorenzana, a 33-year-old single mother, filed suit against Citigroup, claiming that she was fired in August from the Citibank branch at the Chrysler Center for looking too sexy.

New York Times
May 12, 2010 Prosecutors Ask if 8 Banks Duped Rating Agencies

QUOTE: The New York attorney general has started an investigation of eight banks to determine whether they provided misleading information to rating agencies in order to inflate the grades of certain mortgage securities, according to two people with knowledge of the investigation.

New York Times
Apr 12, 2010 Lehman Channeled Risks Through ‘Alter Ego’ Firm

QUOTE: It was like a hidden passage on Wall Street, a secret channel that enabled billions of dollars to flow through Lehman Brothers. In the years before its collapse, Lehman used a small company — its “alter ego,” in the words of a former Lehman trader — to shift investments off its books.

New York Times
Feb 17, 2010 Wall Street's Bailout Hustle: Goldman Sachs and other big banks aren't just pocketing the trillions we gave them to rescue the economy - they're re-creating the conditions for another crash

QUOTE: there's still a widespread misunderstanding of how exactly Wall Street "earns" its money, with emphasis on the quotation marks around "earns." The question everyone should be asking, as one bailout recipient after another posts massive profits — Goldman reported $13.4 billion in profits last year, after paying out that $16.2 billion in bonuses and compensation — is this: In an economy as horrible as ours, with every factory town between New York and Los Angeles looking like those hollowed-out ghost ships we see on History Channel documentaries like Shipwrecks of the Great Lakes, where in the hell did Wall Street's eye-popping profits come from, exactly?

Rolling Stone
Oct 14, 2009 JPMorgan earnings show ‘too big to fail' banks getting bigger: JPMorgan Chase's surging earnings show that many of the biggest US banks are becoming more powerful. What happens if they get in trouble again?

QUOTE: The question is: How can regulators reduce the risk of another financial crisis should these banks get into trouble again. In other words, if they were too big to fail then, they would seem to be even more so now.

Christian Science Monitor
Oct 05, 2009 Report on Bailouts Says Treasury Misled Public

QUOTE: The inspector general who oversees the government’s bailout of the banking system is criticizing the Treasury Department for some misleading public statements last fall and raising the possibility that it had unfairly disbursed money to the biggest banks.

New York Times
Aug 05, 2009 Regulator Urges More Limits on Speculative Trading

QUOTE: The chairman of the Commodity Futures Trading Commission said on Wednesday that the agency wanted to impose new restrictions on so-called speculative traders, not to reduce price volatility but to prevent the energy markets from being dominated by a few huge investment funds.

New York Times
Aug 04, 2009 Dueling Public Interests In Policing Rescued Firms: SEC Actions Could Weigh on U.S. Stakes

QUOTE: the quandary [the SEC filing suit against Regions Financial] shows the difficulty facing the nation's top Wall Street cop at a time when the economic crisis has left the U.S. government as the part-owner or controller of an unprecedented array of financial companies. Protecting investors on the one hand could mean harming taxpayer-owners on the other.

Washington Post
Jul 30, 2009 Report Outlines Big Bonuses at Rescued Banks

QUOTE: Compensation practices at the nation's largest banks have become "unmoored" from their financial performance, according to a report released Thursday by the New York Attorney General Andrew Cuomo.

Washington Post
Jul 30, 2009 Big Banks Paid Billions in Bonuses Amid Wall St. Crisis

QUOTE: 4,793 bankers and traders were paid more than $1 million in bonuses last year even as profits at the biggest banks dwindled and they accepted tens of billions of dollars of taxpayer money, according to a report released on Thursday by the New York attorney general’s office....The new rules call for a “say-on-pay” vote for all public companies and additional requirements that compensation committees be made up of independent directors, and would order regulators to restrict "inappropriate or imprudently risky" pay packages at larger banks.

New York Times
Jul 20, 2009 Bailout Overseer Says Banks Misused TARP Funds

QUOTE: Many of the banks that got federal aid to support increased lending have instead used some of the money to make investments, repay debts or buy other banks...

Washington Post
Jul 18, 2009 Windfalls for Bankers, Resentments for the Rest

QUOTE: At a time when so many people are struggling with foreclosures and are either unemployed or worried about losing a job, these earnings were bound to stir up some basic questions of fairness....It’s not merely that Americans have, at least temporarily, abandoned the hope that they’ll earn scads of money. It’s the widespread sense that winners in this economy are produced by a game that’s rigged.

New York Times
Jul 15, 2009 Retailer Knockoffs Abound in India

QUOTE: as brands look to India as one of the few opportunities for growth in an anemic global market, foreign companies and governments alike are protesting the country’s lack of intellectual property protections...

New York Times
Jun 23, 2009 Credit-Card Companies: Who Qualifies Now?

QUOTE: Jittery banks, eager to reduce potential risk, appear to be targeting many borrowers with low-balance or inactive accounts. About 11% of customers who saw their limits cut had no "risk triggers" during that period and generally had very high credit scores. Risk triggers include late payments, excessive cash advances, check bouncing, collecting unemployment, or having a mortgage in an area where property values are plummeting.

Jun 10, 2009 Lobbyists unlimited in honoring lawmakers

QUOTE: Despite a ban on gifts to lawmakers and limits on campaign contributions, lobbyists and groups that employ them can spend unlimited money to honor members of Congress or donate to non-profits connected to them or their relatives.


66 Articles and Resources. Go to:  [Next 20]   [End]