Citigroup

From Wikipedia, the free encyclopedia

Jump to: navigation, search
"Citi" redirects here. For the Columbia Business School research center, see Columbia Institute
for Tele-Information.
Not to be confused with CIT Group, another large financial services company.

This article is outdated. Please update this article to reflect recent events or newly
available information. Please see the talk page for more information. (July 2010)

Citigroup Inc.

Public
Type NYSE: C
TYO: 8710

Banking
Industry
Financial services

Founded New York City, New York (1812)

Headquarters New York City, New York, U.S.

Area served Worldwide

Key people Richard D. Parsons (Chairman)

Vikram Pandit (CEO)
 John Gerspach (CFO)

Consumer banking
Corporate banking
Investment banking
Products
Global wealth management
Financial analysis
Private equity

Revenue $86.601 billion (2010)[1]

Operating income $10.951 billion (2010)[1]

Profit $10.602 billion (2010)[1]

Total assets $1.915 trillion (3Q 2010)

Total equity $163.5 billion (3Q 2010)[1]

Employees 260,000 (2010)[1]

Website Citigroup.com
Citigroup's world headquarters building, 399 Park Avenue, New York City.

Citigroup Center, New York City.

Citigroup Inc. (branded Citi) is a major American financial services company based in New
York City. Citigroup was formed from one of the world's largest mergers in history by
combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7,
1998.[2]
Citigroup Inc. has the world's largest financial services network, spanning 140 countries with
approximately 16,000 offices worldwide. The company employs approximately 260,000 staff
around the world, and holds over 200 million customer accounts in more than 140 countries. It is
a primary dealer in US Treasury securities.[3]
Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in
November 2008 in a massive bailout by the U.S. government.[4] Its largest shareholders include
funds from the Middle East and Singapore.[5] On February 27, 2009, Citigroup announced that
the United States government would take a 36% equity stake in the company by converting $25
billion in emergency aid into common shares; the stake was reduced to 27% after Citigroup sold
$21 billion of common shares and equity in the largest single share sale in US history, surpassing
Bank of America's $19 billion share sale one month prior.
Citigroup is one of the Big Four banks in the United States, along with Bank of America, JP
Morgan Chase and Wells Fargo.[6][7][8][9][10][11][12]

Contents
[hide]
• 1 History
○ 1.1 Citicorp
○ 1.2 Travelers Group
 1.2.1 Salomon Brothers
○ 1.3 Citicorp and Travelers merger
○ 1.4 Travelers spin off
○ 1.5 Subprime mortgage crisis
○ 1.6 Federal assistance
• 2 Organization
○ 2.1 Citicorp
 2.1.1 Regional Consumer Banking
 2.1.2 Institutional Clients Group
○ 2.2 Citi Holdings
 2.2.1 Brokerage and Asset Management
 2.2.2 Local Consumer Lending
 2.2.3 Special Asset Pool
• 3 Divisions
○ 3.1 Global Consumer Group
 3.1.1 Citi Cards
 3.1.2 Citibank
○ 3.2 Global Wealth Management
 3.2.1 Citi Private Bank
 3.2.2 Citi Smith Barney
 3.2.3 Citi Investment Research
○ 3.3 Citi Institutional Clients Group
 3.3.1 Citi Markets and Banking
 3.3.2 Citi Alternative Investments
 • 4 Brands
○ 4.1 Citi
○ 4.2 Citibank
○ 4.3 CitiFinancial
○ 4.4 CitiMortage
○ 4.5 Citi Capital Advisors
○ 4.6 Citi Cards
○ 4.7 Citi Private Bank
○ 4.8 Citi Institutional Clients Group
○ 4.9 Citi Investment Research
○ 4.10 Citi Microfinance
○ 4.11 Banamex
○ 4.12 Woman & Co.
• 5 Real estate
• 6 Criticism
○ 6.1 Raul Salinas and alleged money laundering
○ 6.2 Conflicts of interest on investment research
○ 6.3 Enron, WorldCom and Global Crossing bankruptcies
○ 6.4 Citigroup proprietary government bond trading scandal
○ 6.5 Regulatory action
○ 6.6 Terra Securities scandal
○ 6.7 Theft from customer accounts
○ 6.8 Federal bailout 2008
○ 6.9 Terra Firma Investments lawsuit
• 7 Public and government relations
○ 7.1 Political donations
○ 7.2 Lobbying and political advice
○ 7.3 Public and governmental relations
• 8 Recent Major Events
• 9 Notes
• 10 References
• 11 External links

[edit] History
Citigroup was formed on October 9, 1998, following the $140 billion merger of Citicorp and
Travelers Group to create the world's largest financial services organization.[2] The history of the
company is, thus, divided into the workings of several firms that over time amalgamated into
Citicorp, a multinational banking corporation operating in more than 100 countries; or Travelers
Group, whose businesses covered credit services, consumer finance, brokerage, and insurance.
As such, the company history dates back to the founding of: the City Bank of New York (later
Citibank) in 1812; Bank Handlowy in 1870; Smith Barney in 1873, Banamex in 1884; Salomon
Brothers in 1910.[13]
[edit] Citicorp
The history begins with the City Bank of New York, which was chartered by New York State on
June 16, 1812, with $2 million of capital. Serving a group of New York merchants, the bank
opened for business on September 14 of that year, and Samuel Osgood was elected as the first
President of the company.[14] The company's name was changed to The National City Bank of
New York in 1865 after it joined the new U.S. national banking system, and it became the largest
American bank by 1895.[14] It became the first contributor to the Federal Reserve Bank of New
York in 1913, and the following year it inaugurated the first overseas branch of a U.S. bank in
Buenos Aires, although the bank had, since the mid-nineteenth century, been active in plantation
economies, such as the Cuban sugar industry. The 1918 purchase of U.S. overseas bank
International Banking Corporation helped it become the first American bank to surpass $1 billion
in assets, and it became the largest commercial bank in the world in 1929.[14] As it grew, the bank
became a leading innovator in financial services, becoming the first major U.S. bank to offer
compound interest on savings (1921); unsecured personal loans (1928); customer checking
accounts (1936) and the negotiable certificate of deposit (1961).[14]
The bank changed its name to The First National City Bank of New York in 1955, which was
shortened in 1962 to First National City Bank on the 150th anniversary of the company's
foundation.[14] The company organically entered the leasing and credit card sectors, and its
introduction of USD certificates of deposit in London marked the first new negotiable instrument
in market since 1888. Later to become MasterCard, the bank introduced its First National City
Charge Service credit card – popularly known as the "Everything card" – in 1967.[14]
In 1976, under the leadership of CEO Walter B. Wriston, First National City Bank (and its
holding company First National City Corporation) was renamed as Citibank, N.A. (and Citicorp,
respectively). Shortly afterward, the bank launched the Citicard, which pioneered the use of 24-
hour ATMs.[14] As the bank's expansion continued, the Narre Warren-Caroline Springs credit
card company was purchased in 1981. John S. Reed was elected CEO in 1984, and Citi became a
founding member of the CHAPS clearing house in London. Under his leadership, the next 14
years would see Citibank become the largest bank in the United States, the largest issuer of credit
cards and charge cards in the world, and expand its global reach to over 90 countries.[14]
[edit] Travelers Group
Travelers Group, at the time of merger, was a diverse group of financial concerns that had been
brought together under CEO Sandy Weill. Its roots came from Commercial Credit, a subsidiary
of Control Data Corporation that was taken private by Weill in November 1986 after taking
charge of the company earlier that year.[2][15] Two years later, Weill mastered the buyout of
Primerica – a conglomerate that had already bought life insurer A L Williams as well as stock
broker Smith Barney. The new company took the Primerica name, and employed a "cross-
selling" strategy such that each of the entities within the parent company aimed to sell each
other's services. Its non-financial businesses were spun-off.[15]
The corporate logo of Travelers Inc. (1993–1998) prior to merger with Citicorp.
In September 1992, Travelers Insurance, which had suffered from poor real estate investments[2]
and sustained significant losses in the aftermath of Hurricane Andrew,[16] formed a strategic
alliance with Primerica that would lead to its amalgamation into a single company in December
1993. With the acquisition, the group became Travelers Inc. Property & casualty and life &
annuities underwriting capabilities were added to the business.[15] Meanwhile, the distinctive
Travelers red umbrella logo, which was also acquired in the deal, was applied to all the
businesses within the newly named organization. During this period, Travelers acquired
Shearson Lehman – a retail brokerage and asset management firm that was headed by Weill until
1985[2] – and merged it with Smith Barney.[15]
[edit] Salomon Brothers
Finally, in November 1997, Travelers Group (which had been renamed again in April 1995 when
they merged with Aetna Property and Casualty, Inc.), made the $9 billion deal to purchase
Salomon Brothers, a major bond dealer and bulge bracket investment bank.[15] This deal
complemented Travelers/Smith Barney well as Salomon was focused on fixed-income and
institutional clients whereas Smith Barney was strong in equities and retail. Salomon Brothers
absorbed Smith Barney into the new securities unit termed Salomon Smith Barney; a year later,
the division incorporated Citicorp's former securities operations as well. The Salomon Smith
Barney name was ultimately abandoned in October 2003 after a series of financial scandals that
tarnished the bank's reputation.
[edit] Citicorp and Travelers merger
On April 6, 1998, the merger between Citicorp and Travelers Group was announced to the world,
creating a $140 billion firm with assets of almost $700 billion.[2] The deal would enable Travelers
to market mutual funds and insurance to Citicorp's retail customers while giving the banking
divisions access to an expanded client base of investors and insurance buyers.
Although presented as a merger, the deal was actually more like a stock swap, with Travelers
Group purchasing the entirety of Citicorp shares for $70 billion, and issuing 2.5 new Citigroup
shares for each Citicorp share. Through this mechanism, existing shareholders of each company
owned about half of the new firm.[2] While the new company maintained Citicorp's "Citi" brand
in its name, it adopted Travelers' distinctive "red umbrella" as the new corporate logo, which was
used until 2007.
The chairmen of both parent companies, John Reed and Sandy Weill respectively, were
announced as co-chairmen and co-CEOs of the new company, Citigroup, Inc., although the vast
difference in management styles between the two immediately presented question marks over the
wisdom of such a setup.
The remaining provisions of the Glass-Steagall Act – enacted following the Great Depression –
forbade banks to merge with insurance underwriters, and meant Citigroup had between two and
five years to divest any prohibited assets. However, Weill stated at the time of the merger that
they believed "that over that time the legislation will change...we have had enough discussions
to believe this will not be a problem".[2] Indeed, the passing of the Gramm-Leach-Bliley Act in
November 1999 vindicated Reed and Weill's views, opening the door to financial services
conglomerates offering a mix of commercial banking, investment banking, insurance
underwriting and brokerage.[17]
Joe Plumeri headed the integration of the consumer businesses of Travelers Group and Citicorp
after the merger, and was appointed CEO of Citibank North America by Weill and Reed.[18][19] He
oversaw its network of 450 retail branches.[19][20][21] J. Paul Newsome, an analyst with CIBC
Oppenheimer, said: "He's not the spit-and-polish executive many people expected. He's rough on
the edges. But Citibank knows the bank as an institution is in trouble-it can't get away anymore
with passive selling-and Plumeri has all the passion to throw a glass of cold water on the
bank."[22] It was conjectured that he might become a leading contender to run all of Citigroup
when Weill and Reed stepped down, if he were to effect a big, noticeable victory at Citibank.[22]
In that position, Plumeri boosted the unit's earnings from $108 million to $415 million in one
year, an increase of nearly 400%.[23][24][25] He unexpectedly retired from Citibank, however, in
January 2000.[26][27]
In 2000, Citigroup acquired Associates First Capital Corporation, which, until 1989, had been
owned by Gulf+Western (now part of National Amusements). The Associates was widely
criticized for predatory lending practices and Citi eventually settled with the Federal Trade
Commission by agreeing to pay $240 million to customers who had been victims of a variety of
predatory practices, including "flipping" mortgages, "packing" mortgages with optional credit
insurance, and deceptive marketing practices.[28]
[edit] Travelers spin off

The current logo for Travelers Companies

The company spun off its Travelers Property and Casualty insurance underwriting business in
2002. The spin off was prompted by the insurance unit's drag on Citigroup stock price because
Traveler's earnings were more seasonal and vulnerable to large disasters, particularly the
September 11, 2001 attacks on the World Trade Center in downtown New York City. It was also
difficult to sell this kind of insurance directly to customers since most industrial customers are
accustomed to purchasing insurance through a broker.
The Travelers Property Casualty Corporation merged with The St. Paul Companies Inc. in 2004
forming The St. Paul Travelers Companies. Citigroup retained the life insurance and annuities
underwriting business; however, it sold those businesses to MetLife in 2005. Citigroup still
heavily sells all forms of insurance, but it no longer underwrites insurance.
Inspite of their divesting Travelers Insurance, Citigroup retained Travelers' signature red
umbrella logo as its own until February 2007, when Citigroup agreed to sell the logo back to St.
Paul Travelers,[29] which renamed itself Travelers Companies. Citigroup also decided to adopt the
corporate brand "Citi" for itself and virtually all its subsidiaries, except Primerica and Banamex.
[29]

[edit] Subprime mortgage crisis

Heavy exposure to troubled mortgages in the form of Collateralized debt obligation (CDO's),
compounded by poor risk management led Citigroup into trouble as the subprime mortgage crisis
worsened in 2008. The company had used elaborate mathematical risk models which looked at
mortgages in particular geographical areas, but never included the possibility of a national
housing downturn, or the prospect that millions of mortgage holders would default on their
mortgages. Indeed, trading head Thomas Maheras was close friends with senior risk officer
David Bushnell, which undermined risk oversight.[30][31] As Treasury Secretary, Robert Rubin
was said to be influential in lifting the regulations that allowed Travelers and Citicorp to merge
in 1998. Then on the board of directors of Citigroup, Rubin and Charles Prince were said to be
influential in pushing the company towards MBS and CDOs in the subprime mortgage market.
As the crisis began to unfold, Citigroup announced on April 11, 2007 that it would eliminate
17,000 jobs, or about 5 percent of its workforce, in a broad restructuring designed to cut costs
and bolster its long underperforming stock.[32] Even after securities and brokerage firm Bear
Stearns ran into serious trouble in summer 2007, Citigroup decided the possibility of trouble with
its CDO's was so tiny (less than 1/100 of 1%) that they excluded them from their risk analysis.
With the crisis worsening, Citigroup announced on January 7, 2008 that it was considering
cutting another 5 percent to 10 percent of its work force, which totaled 327,000.[33]
[edit] Federal assistance
Over the past several decades, the United States government has engineered at least four
different rescues of the institution now known as Citigroup.[34] During the most recent tax-payer
funded rescue, by November 2008, Citigroup was insolvent, despite its receipt of $25 billion in
federal TARP bailout money, and on November 17, 2008 Citigroup announced plans for about
52,000 new job cuts, on top of 23,000 cuts already made during 2008 in a huge job cull resulting
from four quarters of consecutive losses and reports that it was unlikely to be in profit again
before 2010. Many senior executives were fired[35] but Wall Street responded by dropping its
stock market value to $6 billion, down from $300 billion two years prior.[36] As a result,
Citigroup and Federal regulators negotiated a plan to stabilize the company and forestall a further
deterioration in the company's value. The arrangement calls for the government to back about
$306 billion in loans and securities and directly invest about $20 billion in the company. The
assets remain on Citigroup's balance sheet; the technical term for this arrangement is ring
fencing. In a New York Times op-ed, Michael Lewis And David Einhorn described the $306
billion guarantee as "an undisguised gift" without any real crisis motivating it.[37] The plan was
approved late in the evening on November 23, 2008.[4] A joint statement by the Treasury
Department, the Federal Reserve and the Federal Deposit Insurance Corp announced: "With
these transactions, the U.S. government is taking the actions necessary to strengthen the financial
system and protect U.S. taxpayers and the U.S. economy."
Citigroup in late 2008 holds $20 billion of mortgage-linked securities, most of which have been
marked down to between 21 cents and 41 cents on the dollar, and has billions of dollars of
buyout and corporate loans. It faces potential massive losses on auto, mortgage and credit card
loans if the economy worsens. [This paragraph requires a reference, particularly to the $20
billion figure quoted above. It is likely that this number is a severe underestimate of the value of
CDO holdings held in off-balance sheet SIVs.]
On January 16, 2009, Citigroup announced its intention to reorganize itself into two operating
units: Citicorp for its retail and investment banking business, and Citi Holdings for its brokerage
and asset management.[38] Citigroup will continue to operate as a single company for the time
being, but Citi Holdings managers will be tasked to "tak[e] advantage of value-enhancing
disposition and combination opportunities as they emerge",[38] and eventual spin-offs or mergers
involving either operating unit have not been ruled out.[39] On February 27, 2009 Citigroup
announced that the United States government would be taking a 36% equity stake in the
company by converting $25 billion in emergency aid into common shares. Citigroup shares
dropped 40% on the news.
On June 1, 2009, it was announced that Citigroup Inc. would be removed from the Dow Jones
Industrial Average effective June 8, 2009 due to significant government ownership. Citigroup
Inc. was replaced by Citigroup's sister firm, insurance company Travelers Co.[40]
[edit] Organization
Citi is organized into two major segments – Citicorp and Citi Holdings.[41]
[edit] Citicorp
[edit] Regional Consumer Banking
Retail Banking, Local Commercial Banking and Citi Personal Wealth Management
• North America, EMEA, Latin America and Asia; Residential real estate in North
America
Citi-Branded Cards
• North America, EMEA, Latin America and Asia
Latin America Asset Management
[edit] Institutional Clients Group
Securities and Banking
• Investment banking
• Debt and equity markets (including prime brokerage)
• Lending
• Private equity
• Hedge funds
• Real estate
• Structured products
• Private Bank
• Equity and Fixed Income research
Transaction Services
• Cash management
• Trade services
• Custody and fund services
• Clearing services
• Agency/trust
[edit] Citi Holdings
[edit] Brokerage and Asset Management
 • Largely includes investment in and associated earnings from Morgan Stanley Smith
Barney joint venture
• Retail alternative investments
[edit] Local Consumer Lending
North America
• Consumer finance lending: residential and commercial real estate; auto, student and
personal loans; and consumer branch lending
• Retail partner cards
• Certain international consumer lending (including Western Europe retail banking and
cards)
[edit] Special Asset Pool
• Certain institutional and consumer bank portfolios
[edit] Divisions
Parts of this article (those related to section) are outdated. Please update this article to
reflect recent events or newly available information. Please see the talk page for more
information. (July 2010)
Citigroup is divided into four major business groups: Consumer Banking, Global Wealth
Management, Global Cards, and Institutional Clients Group.[42]
[edit] Global Consumer Group
This division of Citigroup generated 12 billion in revenue and more than $4 billion in net income
in 2006 , Global Consumer Group comprises four sub-divisions: Cards (credit cards), Consumer
Lending Group (Real-Estate Lending, Auto Loans, Student Loans), Consumer Finance, and
Retail Banking. Targeting individual consumers as well as small- to medium-sized businesses,
GCG offers financial services across its worldwide branch network, including banking, loans,
insurance, and investment services. On March 31, 2008, Citigroup announced that it will create 2
new global businesses – Consumer Banking and Global Cards out of the existing Global
Consumer Group. This has since changed. Consumer Banking "The Americas" is managed by
Manuel Medina Mora who was the CEO of Banamex prior to its merger with Citigroup. Western
Europe, Central Europe and Asia are under Business Managers responsible for both the
Consumer and Corporate/Investment businesses. After 2008, Citigroup carved out CitiHoldings
as a separate entity to manage the businesses on the block. Citigroup Nominates 4 Independent
Directors by New York Times (March 16, 2009)
[edit] Citi Cards
Citi Cards is responsible for around 40% of the profits with GCG, and represents the largest
issuer of credit cards across the world as well as a 3,800-point ATM network across 45 countries.
Consumer Finance division (branded as "CitiFinancial") accounts for about 20% of GCG's
profits, and offers personal loans and homeowner loans to consumers in 20 countries worldwide.
[26] There are over 2,100 branches in the U.S. and Canada.[27] The takeover of Associates First
Capital in September 2000 enabled CitiFinancial to expand its reach outside of the United States,
particularly capitalizing on Associates' 700,000 customers in Japan and Europe.[28] Citi ended
its CitiFinancial operations in the UK in 2008 [3].[29] Citifinancial is head by Mary Mcdowell in
Baltimore, Maryland. On December 8, 2010, CitiGroup announced a rebranding name change
taking into effect summer of 2011 where CitiFinancial will then be operating under the name
OneMain Financial.
[edit] Citibank
Finally, the retail bank encompasses the Citi's global branch network, branded Citibank. Citibank
is the third largest retail bank in the United States based on deposits (although it has considerably
fewer retail branches than many of its smaller rivals), and it has Citibank branded branches in
countries throughout the world, with the exception of Mexico; In Mexico Citigroup's bank
operations are branded as Banamex is the country's second largest bank and a Citigroup
subsidiary.
[edit] Global Wealth Management
Global Wealth Management divides itself into Citi Private Bank, Citi Smith Barney and Citi
Investment Research, and generated 7% of Citigroup's total revenue in 2006.[43] As revenues are
predominantly derived from investment income, Global Wealth Management is more sensitive to
the direction and level of the equity and fixed-income markets than other divisions of the
company.[44]
[edit] Citi Private Bank
Citi Private Bank provides banking and investment services to high net worth individuals, private
institutions, and law firms. Acting as a gateway to all of Citigroup's products, Citi Private Bank
offer traditional investment products and alternative choices, with all clients assigned a Private
Banker to personally deal with their portfolio.
[edit] Citi Smith Barney
Citi Smith Barney was Citi's global private wealth management unit, providing brokerage,
investment banking and asset management services to corporations, governments and individuals
around the world. With over 800 offices worldwide, Smith Barney held 9.6 million domestic
client accounts, representing $1.562 trillion in client assets worldwide.[45]
Citi announced on January 13, 2009 that they would give Smith Barney to Morgan Stanley
investment bank to combine their brokerage firms in exchange for $2.7 billion and 49% interest
in the joint venture. Citi's urgent need for cash is reputed to be a driving force in this deal. Many
have speculated that this may be the beginning of the end of Citi's "financial supermarket"
approach.
[edit] Citi Investment Research
Citi Investment Research is Citi's equities research unit, with 390 research analysts across 22
countries. Citi Investment Research covers 3,100 companies, representing 90 percent of the
market capitalization of the major global indices, providing macro and quantitative analysis of
global markets and sector trends.[45]
[edit] Citi Institutional Clients Group
Citi announced on October 11, 2007 the formation of the new Institutional Clients Group
comprising Citi Markets & Banking (CMB) and Citi Alternative Investments (CAI) with Vikram
Pandit, then 50, as its Chairman and CEO.[46] Vikram Pandit was promoted to CEO of the entire
company two months later.[47]
[edit] Citi Markets and Banking
Containing Citi's most market-sensitive divisions, "CMB" is divided into two primary
businesses: "Global Capital Markets and Banking" and "Global Transaction Services" (GTS).
Global Capital Markets and Banking provides investment- and commercial-banking services
covering institutional brokerage, advisory services, foreign exchange, structured products,
derivatives, loans, leasing, and equipment finance. Meanwhile, GTS offers cash-management,
trade finance and securities services to corporations and financial institutions worldwide.[44]
CMB is responsible for around 32% of Citigroup's annual revenues, generating just under US
$30 billion in 2006 financial year.[43]
Citi is reportedly advising ABRY Partners upon the possible sale of Monitronics in 2010.[48]
[edit] Citi Alternative Investments
Citi Alternative Investments (CAI) is an alternative investment platform that manages assets
across five classes – private equity, hedge funds, structured products, managed futures, and real
estate. Across 16 "boutique investment centers", it offers various funds or separate accounts that
utilize alternative investment strategies, as opposed to the mainstream mutual funds that it
recently sold to Legg Mason. CAI manages Citigroup proprietary capital as well as institutional
investments from third-parties and high-net-worth investors. As of June 30, 2007, CAI holds
US$59.2 billion under capital management,[49] and contributed 7% of Citigroup's 2006 income.[43]
In 2010, Citigroup agreed to sell its private equity unit to Lexington Partners for about $900
million, according to PE Hub, reported by Reuters. StepStone Group will provide management
services for the unit. The sale would mark another step in Citigroup’s efforts to unload its
unwanted assets.[50]
[edit] Brands
[edit] Citi
Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and
institutions with a range of financial products and services, including consumer banking and
credit, corporate and investment banking, securities brokerage, transaction services, and wealth
management.
[edit] Citibank
Found in more than 100 countries, Citibank delivers a wide array of banking, lending and
investment services to individual consumers, as well as to small businesses with up to $10
million in annual sales. Citibank also offers a full range of financial services products to serve
the needs of small and large corporations, governments, and institutional and individual
investors.
[edit] CitiFinancial
Provides community-based lending services through a branch network system. Consumer loan
services include real estate-secured loans, unsecured and partially secured personal loans, and
loans to finance consumer goods.
[edit] CitiMortage
Provides mortgage products to customers.
[edit] Citi Capital Advisors
Creates and delivers a broad offering of investments, including fixed income, private equity, and
infrastructure
[edit] Citi Cards
Citi Cards is a provider of credit cards with more than 150 million accounts generating more than
$144 billion in receivables. Citi Cards is the largest consumer business within Citi employing
more than 32,000 employees at more than 30 sites across North America.
[edit] Citi Private Bank
The Citi Private Bank provides wealthy individuals a range of finance, banking, investment, trust
and advisory services.
[edit] Citi Institutional Clients Group
Citi Institutional Clients Group provides investment and commercial banking services and is
organized into five groups: Global Banking, Global Markets, Global Transaction Services, Citi
Capital Advisors and the Citi Private Bank.
[edit] Citi Investment Research
Citi Investment Research is a research unit composed of 390 research analysts across 22
countries. The unit covers 3,100 companies and provides macro and quantitative analysis of
global markets and sector trends.
[edit] Citi Microfinance
Citi Microfinance works with the microfinance sector to broaden the reach of financial services
including providing direct and structured financing, access to local capital markets, leasing,
individual lending through MFI partners, foreign exchange and interest rate hedging, remittances
and insurance.
[edit] Banamex
Banamex is Mexico's largest commercial bank in terms of equity and earnings, and Citigroup's
access to the Mexican and Latin American markets.
[edit] Woman & Co.
Women & Co. is a membership program that addresses the unique financial facts of women's
lives.
[edit] Real estate
Citigroup Center, Chicago

Citigroup EMEA headquarters, Canary Wharf, London

Citigroup Centre in Sydney
Citigroup's most famous office building is the Citigroup Center, a diagonal-roof skyscraper
located in East Midtown, Manhattan, New York City, which despite popular belief is not the
company's headquarters building. Citigroup has its headquarters across the street in an
anonymous-looking building at 399 Park Avenue (the site of the original location of the City
National Bank). The headquarters is outfitted with nine luxury dining rooms, with a team of
private chefs preparing a different menu for each day. The management team is on the third and
fourth floors above a Citibank branch. Citigroup also leases a building in the TriBeCa
neighborhood in Manhattan at 388 Greenwich St, that serves as headquarters for its Investment
and Corporate Banking operations and was the former headquarters of the Travelers Group.
Strategically, all of Citigroup's New York City real estate, excluding the company's Smith
Barney division and Wall Street trading division, lies along the New York City Subway's IND
Queens Boulevard Line, served by the E M trains. Consequently, the company's Midtown
buildings—including 787 Seventh Avenue, 666 Fifth Avenue, 399 Park Avenue, 485 Lexington,
153 East 53rd Street (Citigroup Center), and Citigroup Building in Long Island City, Queens, are
all no more than two stops away from each other. In fact, every company building lies above or
right across the street from a subway station served by the E M trains.
Chicago also plays home to an architectural beauty operated by Citigroup. Citicorp Center has a
series of curved archways at its peak, and sits across the street from major competitor ABN
AMRO's ABN AMRO Plaza. It has a host of retail and dining facilities serving thousands of
Metra customers daily via the Ogilvie Transportation Center.
Citigroup has obtained naming rights to Citi Field, the home ballpark of the New York Mets
Major League Baseball team, who began playing their home games there in 2009.
[edit] Criticism
[edit] Raul Salinas and alleged money laundering
In 1998, the General Accounting Office issued a report critical of Citibank's handling of funds
received from Raul Salinas de Gortari, the brother of Carlos Salinas, the former president of
Mexico. The report, titled "Raul Salinas, Citibank and Alleged Money Laundering," indicated
that Citibank facilitated the transfer of millions of dollars through complex financial transactions
to hide the paper trail of funds. The report also indicated that Citibank took on Raul Salinas as a
client even though they did not make a thorough inquiry as to how he made his fortune.[51]
[edit] Conflicts of interest on investment research
In December 2002, Citigroup paid fines totaling $400 million, with the amount split between the
states and the federal government. The fines were part of a settlement involving charges that ten
banks, including Citigroup, deceived investors with biased research. The total settlement with the
ten banks was $1.4 billion. The settlement required that the banks separate investment banking
from research, and ban any allocation of IPO shares.[52]
[edit] Enron, WorldCom and Global Crossing bankruptcies
Citigroup paid out over $3 billion in fines and legal settlements for their role in financing Enron
Corporation, which collapsed amid a financial scandal in 2001. In 2003, Citigroup paid $145
million in fines and penalties to settle claims by the Securities and Exchange Commission and
the Manhattan district attorney’s office. In 2005, Citigroup paid $2 billion to settle a lawsuit filed
by investors in Enron.[53] In 2008, Citigroup paid $1.66 billion to the Enron Bankruptcy Estate,
which represented creditors of the bankrupt company.[54] In 2004, Citigroup paid $2.65 billion to
settle a lawsuit concerning their role in selling stocks and bonds for WorldCom, which collapsed
in 2002 in an accounting scandal.[55] In 2005, Citigroup paid $75 million to settle a lawsuit from
investors in Global Crossing, which filed bankruptcy in 2002. Citigroup was accused of issuing
exaggerated research reports and not disclosing conflicts of interest.[56]
[edit] Citigroup proprietary government bond trading scandal
Citigroup was criticized for disrupting the European bond market by rapidly selling €11 billion
worth of bonds on August 2, 2004 on the MTS Group trading platform, driving down the price,
and then buying it back at cheaper prices.[57]
[edit] Regulatory action
In 2004, Japanese regulators took action against Citibank Japan in connection with making loans
to a customer involved in stock manipulation. This action included suspension of bank activities
in one branch and three offices, and restrictions on their consumer banking division. In 2009, the
Japanese regulators again took action against Citibank Japan, this time in regard to the bank not
setting up an effective money laundering monitoring system. The regulatory agency suspended
sales operations within its retail banking operations for a month.[58]
On March 23, 2005, the NASD announced total fines of $21.25 million against Citigroup Global
Markets, Inc., American Express Financial Advisors and Chase Investment Services regarding
suitability and supervisory violations relating to mutual fund sales practices between January
2002 and July 2003. The case against Citigroup involved recommendations and sales of Class B
and Class C shares of mutual funds.[59]
On June 6, 2007, the NASD announced more than $15 million in fines and restitution against
Citigroup Global Markets, Inc., to settle charges related to misleading documents and inadequate
disclosure in retirement seminars and meetings for BellSouth Corp. employees in North Carolina
and South Carolina. NASD found that Citigroup did not properly supervise a team of brokers
located in Charlotte, N.C., who used misleading sales materials during dozens of seminars and
meetings for hundreds of BellSouth employees.[60]
[edit] Terra Securities scandal
In November 2007 it became public that the Citigroup is heavily involved in the Terra Securities
scandal, which involved investments by eight municipalities of Norway in various hedge funds
in the United States bond market.[61] The funds were sold by Terra Securities ASA to the
municipalities, while the products were delivered by Citigroup. Terra Securities ASA filed for
bankruptcy November 28, 2007, the day after they received a letter[62] from The Financial
Supervisory Authority of Norway announcing withdrawal of permissions to operate. The same
letter also stated, "The Supervisory Authority contends that Citigroup's presentation, as well as
the presentation from Terra Securities ASA, appears insufficient and misleading because central
elements like information about potential extra payments and the size of these are omitted."
[edit] Theft from customer accounts
On August 26, 2008 it was announced that Citigroup agreed to pay nearly $18 million in refunds
and fines to settle accusations by California Attorney General Jerry Brown that it wrongly took
funds from the accounts of credit card customers. Citigroup would pay $14 million of restitution
to roughly 53,000 customers nationwide. A three-year investigation found that Citigroup from
1992 to 2003 used an improper computerized "sweep" feature to move positive balances from
card accounts into the bank's general fund, without telling cardholders.[63]
Brown said in a statement that Citigroup "knowingly stole from its customers, mostly poor
people and the recently deceased, when it designed and implemented the sweeps...When a
whistleblower uncovered the scam and brought it to his superiors, they buried the information
and continued the illegal practice."[63]
[edit] Federal bailout 2008
On November 24, 2008, the U.S. government announced a massive bailout of Citigroup,
designed to rescue the company from bankruptcy while giving the government a major say in its
operations. The Treasury will provide another $20 billion in Troubled Asset Relief Program
(TARP) funds in addition to $25 billion given in October. The Treasury Department, the Federal
Reserve and the Federal Deposit Insurance Corporation (FDIC) will cover 90% of the losses on
its $335 billion portfolio after Citigroup absorbs the first $29 billion in losses.[64] In return the
bank will give Washington $27 billion of preferred shares and warrants to acquire stock. The
government will obtain wide powers over banking operations. Citigroup has agreed to try to
modify mortgages, using standards set up by the FDIC after the collapse of IndyMac Bank, with
the goal of keeping as many homeowners as possible in their houses. Executive salaries will be
capped.[65]
As a condition of the bailout, Citigroup's dividend payment has been reduced to 1 cent per share.
As the subprime mortgage crisis began to unfold, heavy exposure to toxic mortgages in the forms
of Collateralized debt obligation (CDOs), compounded by poor risk management led the
company into serious trouble. In early 2007 Citigroup began eliminating about 5 percent of its
workforce, in a broad restructuring designed to cut costs and bolster its long underperforming
stock.[32] By November 2008, the ongoing crisis hit Citigroup hard and despite federal TARP
bailout money, the company announced further cuts.[35] Its stock market value dropped to $6
billion, down from $244 billion two years prior.[36] As a result, Citigroup and Federal regulators
negotiated a plan to stabilize the company.[4] Its single largest shareholder is Prince Al-Waleed
bin Talal of Saudi Arabia, who has a 4.9% stake.[66] Vikram Pandit is Citigroup's current CEO,
while Richard Parsons is the current chairman.[47]
According to New York Attorney General Andrew Cuomo and as reported by the Wall Street
Journal, after having received its $45 billion TARP bailout in late 2008, Citigroup paid hundreds
of millions of dollars in bonuses to more than 1,038 of its employees. This included 738
employees each receiving $1 million in bonuses, 176 employees each receiving $2 million
bonuses, 124 each receiving $3 million in bonuses, and 143 each receiving bonuses of $4 million
to more than $10 million.[67]
[edit] Terra Firma Investments lawsuit
In Dec. 2009, Citigroup was sued by British equity firm Terra Firma Investments for fraud
regarding Terra Firma Investment's purchase of music corporation EMI's label and music
publishing interests.[68]
[edit] Public and government relations
[edit] Political donations
Citigroup is the 16th largest political campaign contributor in the United States, out of all
organizations, according to the Center for Responsive Politics. According to Matthew Vadum, a
senior editor at the conservative Capital Research Center, Citigroup is also a heavy contributor to
left-of-center political causes.[69] However, members of the firm have donated over $23,033,490
from 1989–2006, 49% of which went to Democrats and 51% of which went to Republicans.[70]
[edit] Lobbying and political advice
In 2009, Richard Parsons hired long-time Washington, D.C. lobbyist Richard F. Hohlt to advise
Parsons and the company about relations with the U. S. government, though not to lobby for the
company. While some speculated anonymously that the FDIC would have been a particular
focus of Mr. Hohlt's attention, Hohlt said he'd had no contact with the government insurance
corporation. Some former regulators found room to criticize, in the news report, Mr. Hohlt's
involvement with Citigroup, because of his earlier involvement with the financial-services
industry during the savings and loan crisis of the 1980s. Mr. Hohlt responded that though
mistakes were made in the earlier episode, not to mention by other more recent clients of his like
Fannie Mae and Washington Mutual, he'd never been investigated by any government agency
and his experience gave him reason to be back in the "operating room" as parties address the
more recent crisis.[71]
[edit] Public and governmental relations
In 2010, the company named Edward Skyler, formerly in New York City government and at
Bloomberg LP, to its senior public and governmental relations position.[72] Before Skyler was
named and before he began his job search, the company reportedly held discussions with three
other individuals to fill the position: NY Deputy Mayor Kevin Sheekey, Mayor Michael
Bloomberg's "political guru ... [who] spearheaded ... his short-lived flirtation with a presidential
run ..., who will soon leave City Hall for a position at the mayor’s company, Bloomberg L.P. ....
After Mr. Bloomberg’s improbable victory in the 2001 mayor’s race, both Mr. Skyler and Mr.
Sheekey followed him from his company to City Hall. Since then, they have been a part of an
enormously influential coterie of advisers"; Howard Wolfson, the former communications
director for Hillary Rodham Clinton’s presidential campaign and Mr. Bloomberg’s re-election
bid; and Gary Ginsberg, now at Time Warner and formerly at News Corporation.[73]
[edit] Recent Major Events
In 2010, Citigroup celebrated its first year in the black since 2007. It reported $10.6 billion in net
profit, compared with a $1.6 billion loss in 2009. [74] Because of this, John Paulson, the hedge
fund manager, who became a billionaire after predicting the US housing crash, saw his fund
generate $1 billion betting on the recovery of Citigroup. [75]
[edit] Notes
1. ^ a b c d e "Form 10-K". http://finance.yahoo.com/q/is?s=C+Income+Statement&annual. Retrieved
February 3, 2009.
2. ^ a b c d e f g h Martin, Mitchell (April 7, 1998). "Citicorp and Travelers Plan to Merge in Record
$140 Billion Deal: A New No. 1: Financial Giants Unite". International Herald Tribune.
http://www.iht.com/articles/1998/04/07/citi.t.php. Retrieved April 4, 2007. [dead link]
3. ^ "Primary Dealers List". Federal Reserve Bank of New York.
http://www.ny.frb.org/markets/pridealers_current.html. Retrieved April 27, 2007.
4. ^ a b c Dash, Eric (November 23, 2008). "U.S. Approves Plan to Help Citigroup Weather Losses".
Business (The New York Times). http://www.nytimes.com/2008/11/24/business/24citibank.html?
hp. Retrieved November 23, 2008.
5. ^ http://www.bloomberg.com/apps/news?pid=20601087&sid=anjGWhqi0PSE&refer=home
6. ^ Winkler, Rolfe (September 15, 2009). "Break Up the Big Banks". Reuters.
http://blogs.reuters.com/rolfe-winkler/2009/09/15/break-up-the-big-banks/. Retrieved December
17, 2009.
7. ^ Tully, Shawn (February 27, 2009). "Will the banks survive?". Fortune Magazine/CNN Money.
http://money.cnn.com/2009/02/27/news/economy/tully_banks.fortune/index.htm?
source=yahoo_quote. Retrieved December 17, 2009.
8. ^ "Citigroup posts 4th straight loss; Merrill loss widens". The Associated Press. October 16,
2008. http://www.usatoday.com/money/companies/earnings/2008-10-16-citigroup_N.htm.
Retrieved December 17, 2009.
9. ^ Winkler, Rolfe (August 21, 2009). "Big banks still hold regulators hostage". Reuters, via
Forbes.com. http://www.forbes.com/feeds/afx/2009/08/21/afx6803343.html. Retrieved December
17, 2009.
10.^ Temple, James; The Associated Press (November 18, 2008). "Bay Area job losses likely in
Citigroup layoffs". The San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?
f=/c/a/2008/11/17/BURD146AIA.DTL. Retrieved December 17, 2009.
11.^ Dash, Eric (August 23, 2007). "4 Major Banks Tap Fed for Financing". The New York Times.
http://www.nytimes.com/2007/08/23/business/23discount.html. Retrieved December 17, 2009.
12.^ Pender, Kathleen (November 25, 2008). "Citigroup gets a monetary lifeline from feds". The
San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?
f=/c/a/2008/11/24/BUST14B71M.DTL. Retrieved December 17, 2009.
13.^ "About Citi". Citigroup. Archived from the original on March 9, 2007.
http://web.archive.org/web/20070309173314/http://www.citigroup.com/citigroup/corporate/histor
y/index.htm. Retrieved April 4, 2007.
14.^ a b c d e f g h "About Citi – Citibank, N.A.". Citigroup. Archived from the original on April 16,
2007.
http://web.archive.org/web/20070416132329/http://www.citigroup.com/citigroup/corporate/histor
y/citibank.htm. Retrieved May 12, 2007.
15.^ a b c d e "About Citi – Primerica Financial Services". Citigroup. Archived from the original on
March 27, 2008.
http://web.archive.org/web/20080327182116/http://www.citigroup.com/citigroup/corporate/histor
y/primerica.htm. Retrieved April 4, 2008.
16.^ "Survival Insurance". Time. June 24, 2001.
http://www.time.com/time/magazine/article/0,9171,158008,00.html. Retrieved September 17,
2007.
17.^ Heakal, Reem (July 16, 2003). "What Was The Glass-Steagall Act?". Investopedia.
http://www.investopedia.com/articles/03/071603.asp. Retrieved September 13, 2007.
18.^ "Plumeri next Willis CEO; Former Citigroup executive to succeed Reeve". Business Insurance.
October 2, 2000. http://www.highbeam.com/doc/1G1-65799679.html. Retrieved July 15, 2010.
19.^ a b "Willis Names Plumeri New Chairman/CEO". National Underwriter Property & Casualty-
Risk & Benefits Management. October 9, 2000. http://www.highbeam.com/doc/1G1-
66458878.html. Retrieved July 15, 2010.
20.^ "Joseph J. Plumeri Profile". Forbes. http://people.forbes.com/profile/joseph-j-plumeri/86637.
Retrieved July 15, 2010.
21.^ "Citi Veteran to Lead U.K. Insurance Broker.(Joseph J. Plumeri moves to Willis Group)".
American Banker. September 27, 2000. http://www.highbeam.com/doc/1G1-65508232.html.
Retrieved July 15, 2010.
22.^ a b Nash, Jeff (April 19, 1999). "The Chief Preacher: Joe Plumeri – Citibank Finds Sales
Religion". Investment News.
http://www.investmentnews.com/article/19990419/SUB/904190722. Retrieved July 16, 2010.
23.^ "Commerce adds Plumeri to Board of Directors". Philadelphia Business Journal. November 19,
2003. http://philadelphia.bizjournals.com/philadelphia/stories/2003/11/17/daily17.html?
jst=b_ln_hl. Retrieved July 16, 2010.
24.^ "Joe Plumeri". International Risk Management Institute.
http://www.irmi.com/conferences/crc/speakers/plumeri.aspx. Retrieved July 16, 2010.
25.^ "Breaking with Tradition: Willis Re-energized", Risk Transfer Magazine, April 1, 2004
26.^ "Joe Plumeri, Playing in Traffic: with his quest for adventure and 'just go for it' philosophy, the
CEO of insurance broker Willis Group Holdings has got the competitive spirit kicking in again at
this 175-year-old company". Directors & Boards. June 22, 2004.
http://goliath.ecnext.com/coms2/gi_0199-4230519/Joe-Plumeri-playing-in-traffic.html. Retrieved
July 15, 2010.
27.^ B. Moyer (December 6, 1999). "After Turnover At Citi, More Deals Expected". American
Banker. http://www.highbeam.com/doc/1G1-58043412.html. Retrieved July 16, 2010.
28.^ Citigroup Settles FTC Charges Against the Associates Record-Setting $215 Million for
Subprime Lending Victims http://www.ftc.gov/opa/2002/09/associates.shtm
29.^ a b "Citigroup Announces Unified, Global Brand Identity Under "Citi" Name". Citigroup.
February 13, 2007. http://www.citigroup.com/citigroup/press/2007/070213a.htm. Retrieved
August 7, 2008.
30.^ Thomas, Landon Jr. (January 27, 2008). "What’s $34 Billion on Wall Street?". New York
Times. http://www.nytimes.com/2008/01/27/business/yourmoney/27kim.html?pagewanted=print.
Retrieved September 22, 2009.
31.^ Dash, Eric; Creswell, Julie (November 23, 2008). "Citigroup Saw No Red Flags Even as It
Made Bolder Bets". New York Times. http://www.nytimes.com/2008/11/23/business/23citi.html?
pagewanted=print. Retrieved September 22, 2009.
32.^ a b Stempel, Jonathan; Dan Wilchins (April 12, 2007). "Citigroup to slash 17,000 jobs". Courier
Mail. http://www.news.com.au/couriermail/story/0,23739,21543387-5003402,00.html. Retrieved
August 7, 2008. [dead link]
33.^ Plumb, Christian (January 1, 2008). "Citi mulls cutting work force by 5 to 10 percent: report".
Reuters. http://www.reuters.com/article/businessNews/idUSN0738522020080107. Retrieved
August 7, 2008.
34.^ New York Times, October 31, 2009, "Can Citigroup Carry Its Own Weight?"
http://www.nytimes.com/2009/11/01/business/economy/01citi.html?_r=1&hpw
35.^ a b "Citigroup job cull to hit 75,000". BBC. November 17, 2008.
http://news.bbc.co.uk/1/hi/business/7733575.stm. Retrieved November 17, 2008.
36.^ a b Dash, Eric; Creswell, Julie (November 22, 2008). "Citigroup Saw No Red Flags Even as It
Made Bolder Bets". Business (The New York Times).
http://www.nytimes.com/2008/11/23/business/23citi.html. Retrieved November 23, 2008.
37.^ Lewis, Michael; Einhorn, David (January 4, 2009). "How to Repair a Broken Financial World".
The New York Times. http://www.nytimes.com/2009/01/04/opinion/04lewiseinhornb.html?
pagewanted=print. Retrieved January 5, 2009.
38.^ a b "Citi to Reorganize into Two Operating Units to Maximize Value of Core Franchise".
Citigroup. January 16, 2009. http://www.citigroup.com/citi/press/2009/090116b.htm. Retrieved
January 16, 2009.
39.^ Dash, Eric (January 17, 2009). "Citigroup Reports Big Loss and a Breakup Plan". The New
York Times. http://www.nytimes.com/2009/01/17/business/17citi.html?pagewanted=print.
Retrieved September 22, 2009.
40.^ Browning, E.S. (June 1, 2009). "Travelers, Cisco Replace Citi, GM in Dow". Wall Street
Journal (Dow Jones & Company). http://online.wsj.com/article/SB124386244318072033.html.
Retrieved November 1, 2009.
41.^ http://www.citigroup.com/citi/business/index.htm
42.^ "How Citi is Organized". Citigroup. http://www.citigroup.com/citi/business/index.htm.
Retrieved January 23, 2009.
43.^ a b c Citigroup Annual Report, 2006
44.^ a b Braden, Frank (April 17, 2007). "A Compelling Case for Citigroup". Business Week.
http://www.businessweek.com/investor/content/apr2007/pi20070417_581458.htm. Retrieved
September 13, 2007.
45.^ a b "Citigroup – Our Businesses". Citigroup.
http://www.citigroup.com/citigroup/business/index.htm. Retrieved September 13, 2007.
46.^ Citigroup (October 11, 2007). "Citi Forms Institutional Clients Group". Press release.
http://www.citigroup.com/citigroup/press/2007/071011b.htm. Retrieved October 11, 2007.
47.^ a b Citigroup (December 11, 2007). "Citi Board Names Vikram Pandit Chief Executive Officer
and Sir Win Bischoff is the current Chairman". Press release.
http://www.citigroup.com/citigroup/press/2007/071211a.htm. Retrieved December 12, 2007.
48.^ "Monitronics on block, could be $1 bln or more-sources". Reuters. July 28, 2010.
http://www.reuters.com/article/idUSN2811250320100728. Retrieved August 24, 2010.
49.^ "Overview of CAI". Citi Alternative Investments.
https://www.citigroupai.com/about_overview_cai.htm. Retrieved September 13, 2007.
50.^ "Citigroup sells private equity unit". Reuters. July 7, 2010.
http://www.reuters.com/article/idUSTRE66645620100707?dbk.
51.^ The Washington Post. December 4, 1998. http://www.washingtonpost.com/wp-
srv/inatl/longterm/mexico/stories/981204.htm.
52.^ http://www.marketwatch.com/story/wall-street-firms-to-pay-14-billion-in-probe
53.^ Johnson, Carrie (June 11, 2005). "Citigroup to Settle With Enron Investors". The Washington
Post. http://www.washingtonpost.com/wp-
dyn/content/article/2005/06/10/AR2005061000532.html.
54.^ Dash, Eric (March 27, 2008). "Citigroup Resolves Claims That It Helped Enron Deceive
Investors". The New York Times. http://www.nytimes.com/2008/03/27/business/27enron.html?
partner=rssnyt&emc=rss.
55.^ "Citigroup Settles WorldCom Case". Los Angeles Times. May 11, 2004.
http://articles.latimes.com/2004/may/11/business/fi-citi11.
56.^ "Global Crossing Investors Settle With Citigroup". The New York Times. March 3, 2005.
http://www.nytimes.com/2005/03/03/business/03citigroup.html.
57.^ "Under Pressure, Citigroup Climbs Down on Govie Trade" (fee required). EuroWeek.
September 7, 2004. Archived from the original on March 18, 2007.
http://web.archive.org/web/20070318152609/http://www.euroweek.com/default.asp?
Page=1&SID=436395&ISS=11029. Retrieved March 7, 2007.
58.^ Nicholson, Chris (June 26, 2009). "Japan Slaps Sanctions on Citibank". The New York Times.
http://dealbook.blogs.nytimes.com/2009/06/26/japanese-regulators-suspend-citibank-retail-ads/.
59.^ Condon, Nancy; Herb Perone (March 23, 2005). "NASD Fines Citigroup Global Markets,
American Express and Chase Investment Services More Than $21 Million for Improper Sales of
Class B and C Shares of Mutual Funds". NASD.
http://www.finra.org/PressRoom/NewsReleases/2005NewsReleases/P013648. Retrieved August
7, 2008.
60.^ Condon, Nancy; Herb Perone (June 6, 2006). "Citigroup Global Markets to Pay Over $15
Million to Settle Charges Relating to Misleading Documents and Inadequate Disclosure in
Retirement Seminars, Meetings for BellSouth Employees". NASD.
http://www.finra.org/PressRoom/NewsReleases/2007NewsReleases/P019240. Retrieved
September 19, 2007.
61.^ Landler, Mark (December 2, 2007). "U.S. Credit Crisis Adds to Gloom in Norway". The New
York Times. http://www.nytimes.com/2007/12/02/world/europe/02norway.html. Retrieved
December 14, 2007.
62.^ "Forhåndsvarsel om tilbakekall av tillatelse" (in Norwegian) (PDF). KreditTilsynet. November
27, 2007. http://pub.tv2.no/multimedia/na/archive/00527/Kredittilsynet_til__527202a.pdf.
Retrieved December 14, 2007.
63.^ a b Stempel, Jonathan (August 26, 2008). "Citigroup to pay $18 mln over credit card practice".
Reuters.
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2636973720080
826.
 64.^ The Treasury will assume the first $5 billion in losses; the FDIC will absorb the next $10
billion; then the Federal reserve takes over the rest of the risk.
65.^ Eric Dash, "U.S. Approves Plan to Help Citigroup Weather Losses," New York Times
November 23, 2008
66.^ Riz Khan. (October 18, 2005). Alwaleed: Businessman, Billionaire, Prince. HarperCollins
Entertainment. ISBN 0007215134.
67.^ Grocer, Stephen (July 30, 2009). "Wall Street Compensation–'No Clear Rhyme or Reason'".
Wall Street Journal. http://blogs.wsj.com/deals/2009/07/30/wall-street-compensation-no-clear-
rhyme-or-reason/tab/print/. Retrieved September 22, 2009.
68.^ Daily Variety article regarding Terra Firma Investments lawsuit against Citigroup
69.^ "Liberalism Never Sleeps:". http://www.spectator.org/archives/2008/11/25/liberalism-never-
sleeps/print. Retrieved November 29, 2008.
70.^ "Citigroup Inc: Summary". OpenSecrets. http://www.opensecrets.org/orgs/summary.php?
ID=D000000071&Name=Citigroup+Inc. Retrieved August 7, 2008.
71.^ "Citigroup Hires Mr. Inside" by Gretchen Morgenson and Andrew Martin, The New York
Times, October 10, 2009 (p BU1 of NY ed. 2009-10-11). Retrieved 2009-10-11.
72.^ "Mayor Bloomberg deputy Edward Skyler says so long to City Hall", by Adam Lisberg, New
York Daily News, March 31st 2010, 4:00 AM ET. Retrieved 2010-07-27.
73.^ "Another Exit From Bloomberg’s Inner Circle", by Michael Barbaro, The New York Times,
March 30, 2010 (March 31, 2010 p. A19 of NY ed.). Retrieved 2010-07-27.
74.^ "FT.com / Companies / Banks -Results mute celebrations at Citigroup". ft.com.
http://www.ft.com/cms/s/0/2e1f5e74-233f-11e0-b6a3-00144feab49a.html#axzz1C3Ybj7G9.
Retrieved 25 January 2011.
75.^ "John Paulson makes $1bn betting on Citigroup recovery - Telegraph". telegraph.co.uk.
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8280003/John-Paulson-
makes-1bn-betting-on-Citigroup-recovery.html. Retrieved 25 January 2011.

[edit] References
• Langley, Monica (2004). Tearing Down the Walls. New York: Free Press. ISBN 0-7432-
4726-4.
• Yahoo! – Citigroup Inc. Company Profile
○ C: Star Analysts for CITIGROUP – Yahoo! Finance
• Citigroup Reaches Settlement on WorldCom Class Action Litigation for $1.64 Billion
After-Tax
See SEC – Company Information: CITIGROUP INC
• November 4, 2004 – Q3 2004 10-Q
• March 4, 2004 – 2003 10-K
See also Citigroup, and Yahoo!
• January 20, 2005 – Earnings Conference Call (Q3 2004) (press release)(slides) (audio)
• October 14, 2004 – Earnings Conference Call (Q3 2004) (slides) (audio)
• July 15, 2004 – Earnings Conference Call (Q2 2004) (slides) (audio)
 • October 20, 2003 – Earnings Conference Call (Q3 2003) (slides) (audio) (*exclusive, last
call with Sandy Weill)
• January 31, 2005 – MeeLife to Acquire Travelers Life & Annuity (presentation) (audio)
[edit] External links
Wikimedia Commons has media related to: Citigroup

New York City portal

Companies portal

• Company website
[show]v · d · eCitigroup

B
r
a
n
d
s
/
c Banamex · Citibank · Citigold · Citi Private Bank · Egg · Metalmark Capital · Morgan
o Stanley Smith Barney (Quilter) (49%) · Red Roof Inn
m
p
a
n
i
e
s

K
e
y

p Vikram Pandit · Richard Parsons · William R. Rhodes · Lewis B. Kaden · Al-Waleed bin
e Talal · John Havens
o
p
l
e

N Sir Winfried Bischoff · Michael Bloomberg · Gary Crittenden · Jamie Dimon · Ahmed
o
t
a
b
l
e

f
o
r
m Fahour · Stanley Fischer · Lewis Glucksman · Thomas W. Jones · Sallie Krawcheck · Victor
e Menezes · George S. Moore · Samuel Osgood · Joe J. Plumeri · Chuck Prince · John Reed ·
r Robert Rubin · James Stillman Rockefeller · William Rockefeller · Moses Taylor · Sandy
Weill · Robert B. Willumstad · Walter Wriston
e
x
e
c
u
t
i
v
e
s

C
o
r
p
o
r
a
t
Michael Armstrong · Alain Belda · George David · Kenneth T. Derr · John M. Deutch ·
e
Roberto Hernández Ramírez · Ann Jordan · Klaus Kleinfeld · Andrew N. Liveris · Anne
Mulcahy · Richard Parsons · Chuck Prince · Judith Rodin · Robert Rubin · Franklin A.
D
Thomas · Sandy Weill
i
r
e
c
t
o
r
s

L Argentina · Australia · Canada · China · Hong Kong · India · Indonesia · Japan · Malaysia ·
o Mexico · Singapore · Thailand
c
a
l

e
n
t
i
t
i
e
s

Annual revenue: $146.7 billion USD · Employees: 332,000 · Stock Symbol: NYSE: C ·
Website: www.citigroup.com · Headquarters: 399 Park Avenue, New York City, New
York 10043, United States

[show] Links to related articles

[show]v · d · eInvestment banks

Bank

D Bank of America Merrill Lynch · Barclays Capital · Citi Institutional Clients

i Bulge bracketGroup · Credit Suisse · Deutsche Bank Corporate and Investment Bank · J.P.
v Morgan & Co. (J.P. Morgan Cazenove) · UBS Investment Bank
i
s BMO Capital Markets · BOC International · BNP Paribas Corporate and
i Investment Banking · CIBC World Markets · CITIC Securities ·
o Commerzbank Corporates & Markets · Crédit Agricole Corporate and
n Investment Bank (CLSA) · Daiwa Securities SMBC · Harris Williams &
s Co. · Houlihan Lokey · HSBC Global Banking and Markets · ING
Other
Commercial Banking · KBC Bank · Mitsubishi UFJ Securities · Mizuho
o Corporate Bank · Morgan Keegan & Company · Nomura Securities · RBC
f Capital Markets · RBS Global Banking & Markets · Société Générale
Corporate & Investment Bank · Standard Chartered · TD Securities ·
u UniCredit Corporate & Investment Banking · Wells Fargo Securities
n
i
v
e
r
s
a
l

b
 a
n
k
s

I Bulge bracketGoldman Sachs · Morgan Stanley

n
d The Blackstone Group · Brewin Dolphin · BTG Pactual · Centerview
e Partners · Close Brothers Group · Evercore Partners · FBR Capital Markets ·
p Greenhill & Co. · Investec Bank · Jefferies & Co. · Keefe, Bruyette &
e Woods · Lazard · Macquarie Group · Mediobanca · Moelis & Company · N
n Other M Rothschild & Sons · Oppenheimer & Co. · Perella Weinberg Partners ·
d Piper Jaffray · Raymond James · Renaissance Capital · ROTH Capital
e Partners · Sandler O'Neill and Partners · Stifel Nicolaus · Troika Dialog ·
n William Blair & Company
t
s

Category

[show]v · d · e50 largest banks / bank holding companies in the United States as
of December 31, 2010

Ally · American Express · Associated · BancWest* · Bank of America · Bank of New York
Mellon · Barclays* · BB&T · BBVA Compass* · BOK Financial · Capital One · CIT ·
Citigroup · Citizens Financial Group* · City National (California) · Comerica · Commerce ·
Discover · East West Bank · Fifth Third · First Citizens · First Horizon · First Niagara ·
Goldman Sachs · Harris* · HSBC Bank USA* · Huntington · JPMorgan Chase · Key · M&T ·
Marshall & Ilsley* · MetLife · Morgan Stanley · New York Community · Northern Trust · PNC ·
Popular · RBC* · Regions · State Street · SunTrust · Synovus · Taunus* · TCF · TD* · U.S.
Bank · UnionBanCal* · Utrecht-America* · Wells Fargo · Zions
* indicates the U.S. subsidiary of a non-U.S. bank. Inclusion on this list is based on U.S. assets only.

[show]v · d · e2008 economic crisis

Late 2000s recession · 2008 G-20 Washington summit · APEC Peru 2008 · 2009 G-20
London Summit · 2009 G-20 Pittsburgh summit · APEC Singapore 2009 · 2010 G-20
Toronto summit · 2010 G-20 Seoul summit

S United States housing market correction · World food price crisis · Energy crisis (Central
p Asia) · Subprime mortgage crisis (timeline, List of writedowns) · Automotive industry
e crisis · 2008–10 California budget crisis · Future of newspapers · List of entities involved
c (Bankrupt or acquired banks, Bankrupt retailers) · Effects upon museums · Banking
i revelations in Ireland · Resurgence of Keynesianism · January 2008 Société Générale
f
i
c

i
trading loss incident · European sovereign debt crisis
s
s
u
e
s

B
y

c
o
u
n
t
r
y
Belgium · Greece · Iceland · Ireland · Latvia · Russia · Spain · Ukraine · (Europe · Africa ·
( Americas · Asia · Australasia)
o
r

r
e
g
i
o
n
)

[show] Legislation and policy responses

B Banking (Special Provisions) Act 2008 · Commercial Paper Funding Facility · Emergency
a Economic Stabilization Act of 2008 · Troubled Asset Relief Program · Term Asset-Backed
n Securities Loan Facility · Temporary Liquidity Guarantee Program · 2008 United Kingdom
k bank rescue package · 2008 East Asian meetings · Obama financial regulatory reform plan
i of 2009 · Anglo Irish Bank Corporation Act 2009 · 2009 G-20 London Summit · Irish
n emergency budget, 2009 · National Asset Management Agency · Irish budget, 2010 ·
g Dodd-Frank Wall Street Reform and Consumer Protection Act · Bank stress tests: EU, US
a
n
d
f
i
n
a
n
c
e

s
t
a
b
i
l
i
t
y

a
n
d

r
e
f
o
r
m

S National fiscal policy response to the late 2000s recession · Housing and Economic
t Recovery Act of 2008 · Economic Stimulus Act of 2008 · 2008 Chinese economic stimulus
i plan · 2008 European Union stimulus plan · American Recovery and Reinvestment Act of
m 2009 · Fraud Enforcement and Recovery Act of 2009 · Green New Deal
u
l
u
s

a
n
d

r
e
c
o
v
e
r
y

[show] Companies and banking institutions

C New Century Financial Corporation · Woolworths · American Freedom Mortgage ·

o American Home Mortgage · Bernard L. Madoff Investment Securities LLC · Charter
m Communications · Lehman Brothers (bankruptcy) · Linens 'n Things · Mervyns · NetBank ·
p Petters Group Worldwide · Terra Securities (scandal) · Rothstein Rosenfeldt Adler ·
a Sentinel Management Group · Stanford Financial Group · Washington Mutual · Icesave ·
n Kaupthing Singer & Friedlander · Yamato Life · Circuit City · Allco Finance Group ·
i Waterford Wedgwood · Saab Automobile · BearingPoint · Tweeter · Babcock & Brown ·
e Silicon Graphics · Conquest Vacations · General Growth Properties · Chrysler
s (reorganization) · Thornburg Mortgage · Great Southern Group · General Motors
(reorganization) · Eddie Bauer · Nortel · BI-LO (United States) · Arena Football League ·
i DSB Bank · CIT Group · Movie Gallery · Air America Radio · Citadel Broadcasting ·
n Midway Games · Tribune Company · Sun-Times Media Group · FairPoint
Communications · R. H. Donnelley
b
a
n
k
r
u
p
t
c
y
,

r
e
o
r
g
a
n
i
z
a
t
i
o
n
,

a
d
m
i
n
i
s
t
r
a
t
i
o
n
,

o
r

o
t
h
e
r

i
n
s
o
l
v
e
n
c
y

p
r
o
c
e
e
d
i
n
g
s
.
G Northern Rock (nationalisation) · Bear Stearns · IndyMac Federal Bank · Fannie Mae
o (takeover) · Freddie Mac (takeover) · AIG · Bradford & Bingley · Fortis · Glitnir · Hypo
v Real Estate · Dexia · CL Financial · Landsbanki · Kaupthing · Straumur · ING Group ·
e Citigroup · General Motors · Chrysler · Royal Bank of Scotland Group · Bank of
r America · Anglo Irish Bank (nationalisation) · Parex Bank · Bank of Antigua · ACC
n Capital Holdings (reorganization) · U.S. Central Credit Union · Bank of Ireland · HBOS ·
m Allied Irish Banks
e
n
t

i
n
t
e
r
v
e
n
t
i
o
n
s
,

r
e
s
c
u
e
s
,

a
n
d

a
c
q
u
i
s
i
t
i
o
n
s

C
o
m
p
a
n
y

a Ameriquest Mortgage · Countrywide Financial · Bear Stearns · Alliance & Leicester ·

c Merrill Lynch · Washington Mutual · Derbyshire Building Society · Cheshire Building
q Society · HBOS · Wachovia · Sovereign Bank · Barnsley Building Society · Scarborough
u Building Society · National City Corp. (details) · Dunfermline Building Society
i
s
i
t
i
o
n
s

[show] Other topics

A Stanford Financial Group (Allen Stanford) (Laura Pendergest-Holt) · Fairfield Greenwich

l Group · UBS · Sean FitzPatrick (Anglo Irish Bank) · Kazutsugi Nami (Enten controversy) ·
l Nicholas Cosmo · Arthur Nadel · Paul Greenwood · Stephen Walsh · Angelo Mozilo ·
e Barry Tannenbaum · Raj Rajaratnam (Galleon Group)
g
e
d

f
r
a
u
d
s

a
n
d

f
r
a
u
d
s
t
e
r
s

P Bernard Madoff (Ponzi scheme) (Frank DiPascali) (David G. Friehling) · Satyam

r Computer Services (accounting scandal) (Ramalinga Raju) · Marc Stuart Dreier · Norman
o Hsu · Joseph S. Forte · Du Jun · Scott W. Rothstein · Tom Petters
v
e
n

o
r

a
d
m
i
t
t
e
d

f
r
a
u
d
s

a
n
d

f
r
a
u
d
s
t
e
r
s

R
e
l
a
t
e
Federal Deposit Insurance Corporation · Federal Reserve System · Federal Housing
d
Administration · Federal Housing Finance Agency · Federal Housing Finance Board ·
Government National Mortgage Association · Office of Federal Housing Enterprise
e
Oversight · Office of Financial Stability · UK Financial Investments Limited · Federal
n
Home Loan Banks
t
i
t
i
e
s

S Auction rate securities · Collateralized debt obligations · Collateralized mortgage

e obligations · Credit default swaps · Mortgage-backed securities · Secondary mortgage
c market
u
r
i
t
i
e
s

i
n
v
o
l
v
e
d

a
n
d

f
i
n
a
n
 c
i
a
l

m
a
r
k
e
t
s

R
e
l
a
Bailout · Bank run · 2009 California college tuition hike protests · Credit crunch · Dot-com
t
bubble · Economic bubble · Financial contagion · Financial crisis · Great Depression · 2008
e
Greek riots · 2009 Icelandic financial crisis protests · Interbank lending market · Jon
d
Stewart's 2009 criticism of CNBC · Liquidity crisis · Capitalism: A Love Story · 2009 May
Day protests · May 2010 Greek protests · 2010 French pension reform strikes · 2010 UK
t
student protests · 2010–2011 Tunisian protests · 2011 Algerian protests · 2011 Egyptian
o
protests · PIIGS · Tea Party protests
p
i
c
s
Retrieved from "http://en.wikipedia.org/wiki/Citigroup"
Categories: Companies listed on the New York Stock Exchange | Companies listed on the Tokyo
Stock Exchange | Citigroup | Companies listed on the Bolsa de Valores y Productos de Asunción
| Former components of the Dow Jones Industrial Average | Companies based in New York City
| Financial services companies of the United States | Primary dealers | Citigroup people |
Companies established in 1998
Hidden categories: All articles with dead external links | Articles with dead external links from
October 2010 | Articles with dead external links from September 2010 | Wikipedia articles in
need of updating from July 2010
Personal tools
• Log in / create account
Namespaces
• Article
• Discussion
Variants
Views
• Read
• Edit
 • View history
Actions
Search
Top of Form
Special:Search

Search

Bottom of Form
Navigation
• Main page
• Contents
• Featured content
• Current events
• Random article
• Donate to Wikipedia
Interaction
• Help
• About Wikipedia
• Community portal
• Recent changes
• Contact Wikipedia
Toolbox
• What links here
• Related changes
• Upload file
• Special pages
• Permanent link
• Cite this page
Print/export
• Create a book
• Download as PDF
• Printable version
Languages
• ‫العربية‬
• Česky
• Dansk
• Deutsch
• Eesti
• Español
• Euskara
• Français
• ગુજરાતી
• 한국어
• िहनदी
• Bahasa Indonesia
• Italiano
• ‫עברית‬
• ಕನನಡ
• Lietuvių
• मराठी
• Bahasa Melayu
• Nederlands
• 日本語
• Norsk (bokmål)
• Pälzisch
• Polski
• Português
• Română
• Русский
• Suomi
• Svenska
• తలుగు
• Türkçe
• Українська
• 中文
• This page was last modified on 27 January 2011 at 00:35.
• Text is available under the Creative Commons Attribution-ShareAlike License;
additional terms may apply. See Terms of Use for details.
Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit
organization.
• Contact us
• Privacy policy
• About Wikipedia
• Disclaimers