Citibank

Citibank is one of the largest financial services providers in the world for private clients. It is part of Citigroup and is headquartered in New York.

History

It was founded in 1812 as the City Bank of New York. In 1894 it was the largest U.S. bank. In 1902, she began to expand internationally and became the first major U.S. bank to a foreign department. Until 1930 it was the world's largest bank with 100 branches in 23 countries outside the United States. During and after the Second World War, the bank served the American businesses (eg, Ford and Standard Oil ) of the Nazi regime. In 1955 she was renamed The First National City Bank of New York, 1962, First National City Bank and Citibank in 1976. In 1989, the total assets of the then known as Citicorp parent company around 227 billion U.S. dollars.

The reason for the notation "i" is often stated that the spelling was chosen due to problems of the telegraph with the "Y". On the one hand it is claimed, the Telegraph had no "Y" key, on the other hand, that the telex alphabet 've not contain "Y", which, given the wide use of the English language ( just think: "yes" / "day "/" every " / " my " ) is unlikely. What was actually the reason for the choice of notation, but is not supported by any reliable source. Plausible seems that is "wrong" spelling intentionally act as spoilers.

International Presence

Citibank is represented by its own account in over 100 countries on 6 continents.

In July 2008, Citigroup announced that Crédit Mutuel, the German retail banking business of Citibank buys, the price is 4.9 billion euros, plus the profits earned in fiscal year 2008 to the date of the acquisition. Crédit Mutuel was allowed to use the Citibank brand in Germany until March 2010 under license further. The corporate banking, summarized in the Citigroup Global Markets Germany AG & Co. KGaA in Frankfurt am Main, but remained still in the Citibank group. Due to the sale of the German Citibank to Crédit Mutuel was the Targobank on 22 February 2010 from the Citibank Germany.

In December 2011 it was announced that the Belgian retail banking at Citibank Belgium NV is sold to Crédit Mutuel Nord Europe ( CMNE ). The final settlement was made on 30 April 2012. Disclose the transaction have not been disclosed. The parties have agreed that the brand name can be temporarily continue to be used under license. The new brand identity will be announced in due time. With the agreement a company has become of the Citi Group part of the Crédit Mutuel Bank Group once again. In the meantime, has been made known that Citibank Belgium will always bear the name Beobank.

Citibank Germany criticism

The image of Citibank in the press was ambivalent. Although Citibank was awarded as ' customer-centric bank in Germany 2006 ' ( awarded by the University of St. Gallen, the Handelsblatt and Steria Mummert Consulting), at the same time it has been regularly criticized for their lending practices (like the Consumer Protection Plus or Minus). Due to their poor international image, Citibank launched in 2004 a new international campaign Our Shared Responsibilities.

Citibank Germany received in the wake of the collapse of U.S. investment bank Lehman Brothers on 15 September 2008 again negative headlines. Numerous media reports, certificates were especially hard hit by Lehman Brothers in Citibank branches as a safe fixed-term alternative to private customers - have been sold, who were consequently faced with the loss of their investment - including especially many retirees. In Germany alone, it is said to have traded at about 50,000 victims, of which a large part of Citibank customers were. The Citibank is accused according to media reports of financial experts to have a massive boost as the leading distributor of Lehman Brothers the sale of Lehman certificates in Germany, to supply the investment bank with fresh capital.

According Bankruptcy Act Citibank was Lehman's largest creditors with unsecured claims of $ 138 billion over the investment bank. A collapse of Lehman Brothers, Citibank would therefore have plunged into a deep crisis itself.

On 28 May 2009, Citibank announced the successful completion of long discussions with the Consumer NRW, with the agreement had been reached on an ex gratia payment with an amount of € 27 million. This approach was initially well received by the media, but rejected by the community of interest of the Lehman injured as insufficient and mainly beneficial to the bank. The scope of the goodwill offer corresponds to just over five percent of the estimated total damage of 475 million euros, and even according to their own assessment of Citibank two-thirds of the injured customers would go empty. The compensation model provides a multi-level repayment of 30 to 80 percent for those cases before where it comes to life-threatening sums, and includes extensive exclusion criteria. The precise criteria have been published on the side of the consumer center NRW.

In autumn 2009, the Consumer Association ( VZ ) finished on a sample of 15 banks in that they do not further submitted their strong lower refinancing costs to customers. When "Extra - account" Citibank of unregistered interest rate was 16.99 percent. 2010 urged the VZ three banks from because of this practice. A bank signed a cease and desist; against the other two - Targobank and Sparda-Bank Münster - draws the VZ in court.

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