Citigroup
Citigroup Inc. is a financial services provider headquartered in New York, which was created through the merger of Citicorp and Travelers Group in October 1998. In the wake of the financial crisis, the bank that factors in addition to Bank of America, JP Morgan Chase and Wells Fargo at the Big Four America fell increasingly into trouble.
The Bank is one of the 28 major banks, which by the Financial Stability Board (FSB) as " systemically important financial institution" ( systemically important financial institution) were classified. Therefore it is subject to special monitoring and stringent requirements on the level of equity. Due to the international integration a failure of the bank is considered so risky that their failure is considered to have a particularly high risk to the international financial markets. It must therefore have by the standards of Basel III on capital and three other institutions the highest so far required surcharge of 2.5 percentage points.
Business Building
According to information provided by Citigroup had the end of 2000 more than 120 million customers in the retail business and about 230,000 employees. The number of customers rose at times to more than 200 million customers in more than 100 countries.
2003, the Company had assets of $ 1,264,032 million and employed 275,000 people. According to the Forbes Global 2000 list, Citigroup was the largest company in the world on a regular basis until 2007. In the years 2000 and 2007, the share price on the New York Stock Exchange was 55 U.S. dollars. The market capitalization ( number of shares times share price ) reached in January 2006 converted 192.3 billion euros, the total assets in 2006 amounted to the equivalent of 1.884 billion euros. A year later, the debt increased to more than 2,074 billion euros. In 2008 the company slipped in the global rankings at number 24 from the number of employees dropped to 147,000, the market capitalization of only about 15.8 billion euros.
Currently, all shares of Citigroup are in free float. Institutional investors own 67 % of the shares, with the rest being held by private shareholders.
Business
Citigroup is divided into two divisions:
Citicorp
- Global Consumer Banking Retail Banking Latin America
- Citibank Credit Cards
- Citibank North America
- Securities & Banking
- Transaction Services
- Treasury
Citi Holdings
- Brokerage and Asset Management
- Local Consumer Lending
- Special Asset Pool
History
The name goes back to Citigroup, which was founded in 1812 Citibank. Successively, 1870, Bank Handlowy in 1873, Smith Barney, Banamex over 1884 and 1910, Salomon Brothers. From Traveler's Corp.. , Which merged with Citigroup in 1998, the insurance division was later spun off again as an independent company and is now the St. Paul Travelers Insurance.
The merger of Citicorp and Travelers Group was driven by Sandy Weill, the former CEO of Travelers Group. First of Citigroup Sanford Weill and John Reed of, the former CEO of Citicorp, was conducted jointly. However, John Reed was very soon forced to resign. Until 1 October 2003, Sandy Weill was then sole CEO of Citigroup.
Modern History
Charles O. "Chuck" Prince was the successor to Sandy Weill as the CEO, the Chairman of the Board / Director is Citigroup today. With effect from 5 November 2007 Charles Prince resigned as a result of multi-billion dollar write-downs by the subprime mortgage crisis. In its place has been appointed as interim CEO of the previous head of the market " Europe ", Sir Win Bischoff.
In April 2007, the Bank Group, Bank of Overseas Chinese ( BOOC / Taiwan) has taken over. According to the Wall Street Journal, Citigroup paid $ 426 million (323 million euros ) for the BOOC. This Citibank is the largest banking company in Taiwan. In May 2007, 61 % of Japan's scandal broker Nikko Cordial were purchased. Citigroup acquired this for a price of $ 7.7 billion. It was also announced that additional Shares will be purchased at Japan's third largest broker to may want to make Nikko to a wholly owned subsidiary. On December 11, 2007, Vikram Pandit 's successor CEO Charles Prince.
In July 2008, the acquisition of the German retail banking business by the French cooperative banking group Crédit Mutuel was announced.
On 23 November 2008, the United States Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation jointly issued a statement on a government bailout plan to stabilize Citigroup, which has come in the wake of the financial crisis from 2007 problems. The agreement is an asset to be protected of about 306 billion U.S. dollars at Citigroup against losses. In return, the U.S. Treasury and the FDIC will receive preferred shares, ie shares without voting rights. In addition, the Treasury will invest $ 20 billion from the Troubled Asset Relief Program (TARP, a component of the Emergency Economic Stabilization Act ) in preference shares of Citigroup with a dividend of 8 per cent. Citigroup committed themselves, inter alia, to increased restriction on executive pay.
For the fourth quarter of 2008, Citigroup reported a loss of 8.3 billion U.S. dollars. The Institute declared that it would split into two areas Citi Holdings and Citicorp. Citicorp is our traditional banking activities represent in more than 100 countries and with deposits of about $ 1.1 trillion, which would correspond to two-thirds of the total assets of the bank. The rest is, according to the Bank outsourced to Citi Holdings. According to observers indicated this step towards the impending sale of large areas of the bank. Latest Press reportedly intends to Citigroup, its Japanese brokerage Nikko Cordial Securities division to sell again.
Citigroup has received about 45 billion U.S. dollars of direct state aid. In a turbulent Annual General Meeting on 22 April 2009, five board members to be adopted. End of April 2009 announced Citigroup to sell the Japanese securities business and investment banking to the Japanese Sumitomo Mitsui Financial Group for 5.9 billion U.S. dollars. In June 2010 it was announced that Citigroup has sold the business with MasterCard credit cards in Canada for 2 billion Canadian dollars ( 1.6 billion euros ) to the Canadian Imperial Bank of Commerce ( CIBC ).
By early December 2010, the U.S. government acquired all shares of Citigroup sold on the stock exchange and thereby made a profit of 12 billion U.S. dollars.
In September 2011, the rating agency Moody 's downgraded the creditworthiness of short-term borrowings of Citigroup of " Prime-1 " to " Prime-2 " down, while those for long-term loans remained the same ( Note: " A3 "). It is less likely that the U.S. government would intervene to keep a troubled bank before a crisis.
On March 28, 2014 it was announced that Citigroup the stress test of the U.S. Federal Reserve ( " Fed " ) has failed. and that the Fed has banned Citibank higher dividends.
Others
2012, Citigroup has applied citi with the introduction of new generic top -level domains to the ending.. ICANN, which is responsible for the award, was excluded confusion with. City in August 2012. Previously, Citibank had itself postulates a likelihood of confusion.