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Citigroup Inc. (Citigroup) is a diversified global financial services holding company whose businesses provide a range of financial services to consumer and corporate customers. The Company is a bank holding company. Its segments include Global Consumer Group, Corporate and Investment Banking (CIB), Global Wealth Management and Alternative Investments (AI)./span>
Latest News
In an internal memo to all Citigroup employees, Vikram Panditt highlighted quater to date results were the best for seven quarters. Dear Citi Colleagues,After a broad sell off in the markets last week, I thought I would give you a quick update on our position.Despite the steps we’ve taken to strengthen our capital base, I am, like you, disappointed with our current stock price and the broad-based misperceptions about our company and its financial position. I don’t believe it reflects the strengths of Citi; our newly strengthened capital base, our unique global franchise and most importantly, the quality of our... Readmore | New York – Citi today announced it will issue common stock in exchange for preferred securities, which will substantially increase its tangible common equity (TCE) without any additional U.S. government investment. The transaction is intended to build Citi's TCE to a level that removes uncertainty and restores investor confidence in the company.Citi will offer to exchange common stock for up to $27.5 billion of its existing preferred securities and trust preferred securities at a conversion price of $3.25 a share. The U.S. government will match this exchange up to a maximum of $25 billion face value of its preferred stock... Readmore | Under pressure from President Obama, Citigroup reversed course, announcing that it will not take delivery of the jet it had planned to purchase before the credit crisis unfolded.The canceled deal came as many politicians voiced concern about how banks are spending their government bailout money, of which Citigroup got $45 billion.The White House reached out to Citigroup on Monday to reiterate Obama's position that such jets are not "the best use of money at this point," calling them outrageous spending for a company getting taxpayer money.With the cancellation of the jet deal, a deposit on the plane will be lost,... Readmore | NEW YORK – Citi (NYSE: C) today announced it will realign into two businesses, Citicorp and Citi Holdings, to optimize the company's global businesses for future profitable growth and opportunities. This structure will enable Citi to focus on driving the performance of its core businesses and, separately, on realizing value from non-core assets.The strategic restructuring creates: Citicorp, which will focus on leveraging the competitive advantages of the company's global universal bank in more than 100 countries, and, Citi Holdings, which will be made up of brokerage and retail asset management, local consumer finance and a special asset pool – whose... Readmore | New York, NY, January 16, 2009 — Citigroup Inc. (NYSE: C) today reported a net loss for the 2008 fourth quarter of $8.29 billion, or $1.72 per share, based on 5,347 million shares outstanding. Revenues of $5.6 billion were affected by write-downs and losses in Securities and Banking. Results also include $6.1 billion in net credit losses and a $6.0 billion net loan loss reserve build. For the full year 2008, Citigroup reported a net loss of $18.72 billion, or $3.88 per share. See Schedule C for full year business segment results. Key Items Results reflect the negative impact... Readmore | | Show options |
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Citigroup Recent Events
83% Fall in Full Year Net Income
Job Losses
Dividend Cut
Investor ConcernCitigroup announced that the 2007 Full Year Net Income was US$ 3.6 billion a fall of 83% from the previous year’s US$ 21.5 billion. The results included US$ 18.1 billion in pre-tax write-downs and credit costs on sub-prime related direct exposures and a US$ 4.1 billion increase in credit costs primarily on US consumer loans. The Group announced 17,000 job cuts globally in April 2007. In November 2007 it announced its intention for a further 4,200 reduction in staff. Following his appointment as the new CEO, Vikram Pandit has announced that he and his management team will take a thorough review of its businesses to establish if it is correctly sized. They will also focus on productivity enhancements. Already, they have started to reverse the US branch expansion plan. They will also review the risk management in the Group. Although in December 2007 the Board confirmed that it was going to maintain the dividend, alongside the Fourth Quarter and Full Year 2007 Results announcement it was confirmed that the dividend would be cut by 41%. Shareholders have also seen a 50% fall in the share price over the last 12 months and are being further diluted by the additional capital raising of US4 14.5 billion also announced with the annual results. Both investors and employees, many of whom also own stock, are distressed by the results and the subsequent consequences. There is still considerable comment regarding the estimated final compensation payments of the recently resigned Chairman and CEO, Chuck Prince, estimated to be around US$ 40 million including benefits he will retain for up to five years.
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