• Citigroup is the world's largest financial services group, and offers its clients insurance, credit cards, banking, and investment opportunities.
• Citigroup has spearheaded industry efforts to fight legislation that would restrict bank consolidation.
• Citigroup has been accused of engaging in predatory lending practices that prey on the financially vulnerable.
• Citigroup is one of the top financiers of coal mining and coal fired power plants.
•Citigroup's record proves that its desire for profits come at the expense of environmental and social sustainability.
• Find safe, sustainable solutions for your financial needs through Go Green.
-- Profile Updated 08/04/2010
Citigroup, headquartered in New York City, is a financial services group that offers its clients insurance, credit cards, banking and investment opportunities. Citigroup posted over $146 billion in revenue in 2006 and employed 337,000 people.
Global Finance Campaign
The Global Finance Campaign sponsored by the Rainforest Action Network (RAN) works to end the financing of ecologically and socially destructive projects, and emphasizes socially responsible alternatives. RAN’s focus on major financial institutions such as Citigroup, Bank of America, and JPMorgan Chase has met with success: All three have introduced socially responsible operational guidelines. The campaign is now focused on holding these corporations accountable to their own newly set standards.
A. Friedrich Flender AG - Bocholt, Germany
- Acciones y Valores de Mexico, S.A. de C.V. - Mexico, Mexico
- American Health & Life Insurance Company (Subsidiary) - Fort Worth, TX
American Health & Life Insurance Company (Subsidiary) - Fort Worth, TX
- Associates Finance - San Juan, PR
- AST Stockplan, Inc. - New York, NY
- Auto One Acceptance Corp. - Dallas, TX
- Avantel, S.A. - Mexico, Mexico
- Banco de Honduras S.A. - Tegucigalpa, Honduras
- Banco Nacional de Mexico, S.A. - Mexico, Mexico
- Banco Nacional de Mexico, S.A. - New York, NY
- Bearing Inspection Inc. (Subsidiary) - Los Alamitos, CA
- Bruinhof BV - Rotterdam, Netherlands
- California Commerce Bank - Los Angeles, CA
- Citi Capital Commercial Corporation - Toronto, Canada
- Citi Commerce Solutions - Deerfield, IL
- Citi Islamic Investment Bank EC - Manama, Bahrain
- Citibank (Channel Islands) Ltd. - Saint Helier, Jersey
- Citibank - Zurich, Switzerland
- Citibank A.S. - Prague, Czech Republic
- Citibank Belgium - Brussels, Belgium
- Citibank Colombia - Bogota, Colombia
- Citibank Costa Rica S.A. - San Jose, Costa Rica
- Citibank Egypt - Cairo, Egypt
- Citibank El Salvador - San Salvador, El Salvador
- Citibank Espana S.A. - Madrid, Spain
- Citibank Federal Savings Bank - Washington, DC
- Citibank Greece - Athens, Greece
- CitiBank Group (Subsidiary) - New Castle, DE
- Citibank International PLC - London, United Kingdom
- Citibank International PLC - Paris, France
- Citibank Korea Inc. - Seoul, Korea (South)
- Citibank N.A. Guatemala - Guatemala, Guatemala
- Citibank Nigeria - Lagos, Nigeria
- Citibank Panama - Panama, Panama
- Citibank Paraguay - Asuncion, Paraguay
- Citibank Philippines - Manila, Philippines
- Citibank Privatkunden AG & Co - Bavaria, Germany
- Citibank Privatkunden AG - Dusseldorf, Germany
- Citibank Singapore - Singapore, Singapore
- Citibank United Arab Emirates - Dubai, United Arab Emirates
- Citibank USA, National Association - Sioux Falls, SD
- Citibank West FSB - San Francisco, CA
- Citibank, N.A. Bogota - Bogota, Colombia
- Citibank, N.A. Hong Kong - Central, China (Hong Kong)
- CitiCapital Ltd - Watford, United Kingdom
- Citicapital Trailer Rental - Charlotte, NC
- Citicorp Akademie GmbH - Bavaria, Germany
- Citicorp Banking Corp. - New York, NY
- Citicorp Deurschland GmbH - Bavaria, Germany
- Citicorp Diners Club Inc. - Chicago, IL
- Citicorp Information Technologies Inc. - Weehawken, NJ
- Citicorp Kartenservice GmbH - Frankfurt, Germany
- Citicorp Operations Consulting GmbH - Meerbusch, Germany
- Citicorp Securities International, Inc. - Makati, Philippines
- Citicorp Trust South Dakota - Sioux Falls, SD
- Citifinancial (Subsidiary) - Pikeville, KY
- CitiFinancial - Aiken, SC
- CitiFinancial - Baltimore, MD
- Citifinancial Canada East Corp. - Gander, Canada
- Citifinancial Credit Company - Baltimore, MD
- CitiFinancial Home Equity Inc. - Baltimore, MD
- Citifinancial Inc. - Friendswood, TX
- Citifinancial Inc. - Lihue, HI
- CitiFinancial Services Inc. - Baltimore, MD
- Citifinancial Services, Inc. - Plymouth, MA
- Citigroup - Dusseldorf, Germany
- Citigroup - Helsinki, Finland
- Citigroup - Portland, ME
- Citigroup - Vienna, Austria
- Citigroup Asset Management Ltd. - London, United Kingdom
- Citigroup Brazil - Sao Paulo, Brazil
- Citigroup Corporate Aviation - White Plains, NY
- Citigroup Finance Canada, Inc. - London, Canada
- Citigroup Global Markets (International) Finance AG - Zurich, Switzerland
- Citigroup Global Markets (Proprietary) Limited - Johannesburg, South Africa
- Citigroup Global Markets Deurschland AG & Co - Frankfurt, Germany
- Citigroup Global Markets Europe Finance Ltd. - London, United Kingdom
- Citigroup Global Markets Europe Ltd. - London, United Kingdom
- Citigroup Global Markets Holdings GmbH - Zurich, Switzerland
- Citigroup Global Markets Holdings, Inc. - New York, NY
- Citigroup Global Markets Ltd. - London, United Kingdom
- Citigroup Global Markets Singapore Pte. Ltd. - Singapore, Singapore
- Citigroup Global Markets U.K. Equity Ltd. - London, United Kingdom
- Citigroup Morocco - Casablanca, Morocco
- Citigroup Property Ltd. - London, United Kingdom
- Citigroup Reality Services GmbH - Nordhorn, Germany
- Citigroup Services Japan - Tokyo, Japan
- Citigroup Trust - Wilmington, DE
- Citigroup Zambia Ltd. - Lusaka, Zambia
- CitiLife Financial Ltd. - Dublin, Ireland
- Citishare Corporation - Long Island City, NY
- CitiStreet LLC - Quincy, MA
- CityStreet - Jacksonville, FL
- Communico - Clearwater, FL
- Constitution State Claims - Buffalo, NY
- Constitution State Service LLC - Hartford, CT
- E.J. Footwear LLC - Franklin, TN
- EMG Eisen-und Metallgusswerk GmbH - Waldkrainburg, Germany
- Erico International Corp. - Solon, OH
- Flender (Australia) Pty. Ltd. - Wetherill Park, Australia
- Flender Corporation (Branch) - Elgin, IL
- Flender Cubingen GmbH - Tubingen, Germany
- Flender de Mexico, S.A. de C.V. - Puebla, Mexico
- Flender Ges.m.b.h. - Wiener Neudorf, Austria
- Flender Getriebewerk Penig GmbH - Penig, Germany
- Flender Guss GmbH - Wittgensdorf, Germany
- Flender Iberica S.A. - Madrid, Spain
- Flender Ltd. - Kolkata, India
- Flender Nederland B.V. - Apeldoorn, Netherlands
- Flender Oy - Helsinki, Finland
- Flender Power Transmission (Pty.) Ltd. - Isando, South Africa
- Flender Power Transmission Ltd. - Bradford, United Kingdom
- Flender Power Transmission, Inc. - Markham, Canada
- Flender S.A.R.L. - Elancourt, France
- Flender Service GmbH - Herne, Germany
- Flender Singapore Pte. Ltd. - Singapore, Singapore
- Flender Svenka AB - Lerum, Sweden
- Flender-Cigala S.p.A. - Caponago, Italy
- Flender-Graffenstaden S.A. - Elancourt, France
- FNC Insurance Agency Inc. - Frederick, MD
- Geneva Companies LLC - Irvine, CA
- Grand River Navigation Co. - Avon Lake, OH
- Grupo Financiero Banamex - Mexico, Mexico
- Grupo Financiero Banamex S.A. de C.V. - Mexico, Mexico
- JHSW Ltd. - London, United Kingdom
- Kiku (Subsidiary) - Honolulu, HI
- Loher Drive Systems, Inc. - Houston, TX
- Loher GmbH - Rott, Germany
- Loher GmbH - Ruhstorf, Germany
- Lower Lake Towing Ltd. - Port Dover, Canada
- Mid-America Insurance Services Inc. - Normal, IL
- MSX International, Inc. - Auburn Hills, MI
- MSX International, Inc. - Warren, MI
- National Benefit Life Insurance Company - New York, NY
- NV Flender Belge S.A. - Vilvoorde, Belgium
- PFS Investments, Inc. - Duluth, GA
- PFSL Investments Canada Ltd. - Mississauga, Canada
- Phibro Inc. - Westport, CT
- Primerica Financial Services Ltd. - Mississauga, Canada
- Primerica Financial Services, Inc. (Subsidiary) - Duluth, GA
- Primerica Financial Services, Inc. - Kosciusko, MS
- Primerica Life Insurance Company - Duluth, GA
- Primerica Life Insurance Company of Canada - Mississauga, Canada
- Salomon Brothers Asset Management Ltd. - London, United Kingdom
- Scholar Craft (Subsidiary) - Irondale, AL
- Sears Life Insurance Co. - Fort Worth, TX
- Seguros Banamex-Aegon, S.A. de C.V. - Mexico, Mexico
- Siembra Seguros de Retiro S.A. - Hipolito Yrigoyen, Argentina
- Siembra Seguros de Vida S.A. - Buenos Aires, Argentina
- Smith Barney - New York, NY
- Strategic Industries, LLC - Alpharetta, GA
- The Geneva Companies Inc. - Irvine, CA
- Tower Square Securities Inc. - Hartford, CT
- Transouth Financial - Vero Beach, FL
- Transsouth Financial Inc. (Subsidiary) - Murfreesboro, TN
- Triton Insurance Co. - Fort Worth, TX
- Universal Financial Corp. - Salt Lake City, UT
New York, NY 10043 USA
The World Wildlife Fund (WWF) and BankTrack published a report entitled “Shaping the Future of Sustainable Finance,” which examined the environmental and social policies adopted by 39 prominent commercial banks. Banks were assessed and scored on a zero to four scale in 13 areas, such as human rights, labor rights, climate and energy, biodiversity, forests, and sustainable agriculture. Citigroup averaged a score of one.
-- World Wildlife Fund, 01/01/2006
At Citigroup's annual shareholder meeting in April 2002 in New York City, protesters demonstrated against the company's involvement in several environmentally devastating projects including mining in the Amazon River basin, oil pipelines in Venezuela, and palm plantations in Indonesia. The protesters, including members of the Rainforest Action Network, National Organization for Women, Inner City On The Move, and United For A Fair Economy, called on Citigroup to become a leader in developing environmentally and socially friendly practices.
-- Rainforest Action Network, 01/01/2003
Ethics and Governance
Charles O. Prince stepped down as Chairman and CEO of Citigroup in November of 2007. His compensation pakage totaled $38 million made up of bonuses, shares and stock options. Many analysts blame Citigroup's practices under Prince for the ultimate collapse leading to a bailout of the company in late 2008.
-- Guardian, 10/17/2008
Citigroup received a “C” grade on the 2007 NAACP Economic Reciprocity Initiative report. The grade reflects a measurement of corporate America's commitment to African Americans and other people of color. Companies were surveyed for their activity in employment, vendor development and contracting, advertising and marketing, dealerships and philanthropy.
-- NAACP, 07/15/2007
Citigroup gave $20.99 million in political contributions from 1989-2006. In the 2006 election cycle, Citigroup gave a total of $2.545 million, of which $1.362 million (or 54 percent) went to Democrats and $1.117 million (44 percent) to Republicans. Citigroup actively lobbies on issues such as financial privacy, bankruptcy reform, and terrorism reinsurance.
-- Center for Responsive Politics, 02/19/2007
In 2005, the CEO of Citigroup, Charles O. Prince, earned $22,994,729 in compensation. In 2006, he raked in $25,975,719 in total compensation according to the Security and Exchange Commission (SEC) and $25,009,052 according to the AFL-CIO's calculations.
-- AFL-CIO, 02/17/2007
Citigroup dismissed one of its top executives in the U.S. structured products division shortly after the man filed a lawsuit accusing the financial giant of racial discrimination. Ramesh Menon, who had worked for Citigroup since 1996, claimed that the company repeatedly bypassed him for promotions because he was a naturalized citizen of Indian descent. Menon filed the discrimination lawsuit in October of 2005, although he had voiced complaints of sexual and racial discrimination on earlier occasions. Menon claims that his firing is merely an act of retaliation on the part of Citibank for his complaint. UPDATE: Citigroup and Menon reached a settlement agreement in 2006 and Menon has sinced formed his own company ("Ex-Citi exec launches equity fund shop." Euromoney Institutional Investor. 24 April 2006).
-- Reuters, 11/09/2005
Source URL: none available
In 2005 Citigroup shareholders brought forth a resolution calling for a cap on executive compensation, not to exceed 100 times that of employees of non-managerial status. An exception to the standard could be made with shareholder approval. (Actual vote: 6.67%)
-- Interfaith Center for Corporate Responsibility, 01/01/2005
In May 2004 the Federal Reserve fined Citigroup $70 million for illegally requiring certain borrowers who qualified independently for loans to cosign. Citigroup was also required to pay compensation to some of these customers. Although Citigroup consented to the order, it did not admit any malfeasance.
-- Ethical Corporation, 06/01/2004
In May 2004 Citigroup agreed to pay $2.65 billion to investors in WorldCom Inc. who had accused it of participating in financial fraud. The shareholders filed a lawsuit in October 2002 charging that Citigroup officials "averted their eyes" to WorldCom's financial frauds in order to protect $679 million in loans to Worldcom's ex-CEO, Bernard Ebbers. In making the settlement, Citigroup admitted to no wrongdoing.
-- Reuters, 05/10/2004
Source URL: none available
In August 2003 Citigroup Global Markets' brokerage division was fined $1 million by the New York Stock Exchange, for improperly advising WorldCom employees on matters related to their company stock holdings.The NYSE contended that the division advised WorldCom employees to borrow heavily to pay taxes on stock options but did not warn them of potential losses if the value of their holdings fell. The stock of WorldCom, which filed for bankruptcy last year, is now worthless.
-- Washington Post, 08/23/2003
Source URL: none available
In July 2003 the SEC announced that Citigroup Inc. and J.P. Morgan Chase & Co. agreed to pay a combined $236 million to settle charges that they helped Enron manipulate its books to appear financially healthy. The companies also agreed to pay $50 million to settle fraud allegations from the Manhattan district attorney's office.
-- U.S. Securities and Exchange Commission, 07/29/2003
Source URL: www.sec.gov/news/press/2003-87.htm
The Corporate Library named Citigroup as "worst overall" in its listing of the Ten Worst Large US Boards in 2003, a study focused on the responsibility of major corporate governing boards. Citigroup earned the title because its board had declined to take responsibility for financial scandals which rocked the company. Citi CEO Sanford Weill, who “was personally involved” in many of Citi’s recent financial troubles opted to pass fines levied for his and the board’s actions on to Citi shareholders, and although Weill made a public display of refusing his annual bonus, the board awarded him options on millions of shares, valued at well more than $11 million dollars.
-- Corporate Library, 06/10/2003
Source URL: www.thecorporatelibrary.net/
In December 2002 Citigroup was one of ten brokerage firms that agreed to pay $1.44 billion in fines and to fund independent stock research for investors in a settlement with the New York State attorney general's office and the Securities and Exchange Commission, which handled the negotiations. In agreeing to the fines, the firms neither admitted nor denied that they had misled investors. It is hoped that the agreement with the firms will put an end to bankers and analysts pitching deals as a team.
-- Office of the New York State Attorney General, 04/28/2003
In April 2003 the Vanguard Group filed a lawsuit against Citibank and its subsidiary Salomon Smith Barney alleging the firms fraudulently sold it $70 million of worthless Enron Corp. bonds. The lawsuit claims that the firms disguised Enron's mounting debts to Citibank as normal commodity investment accounts, which were used to back Enron bonds. Those bonds were then sold to investors, including Vanguard. The investments turned out to be worthless when Enron went bankrupt in 2001.
-- Associated Press, 04/11/2003
Source URL: none available
Citigroup was named one of the "Ten Worst Corporations of 2002" by Multinational Monitor. The company was cited for a number of corporate scandals, including the manipulation of stock recommendations to secure favors from other corporate boards, the use of deceptive marketing and business practices, and the advocacy of certain stocks despite internal communications that derided them as valueless. The scandals resulted in numerous federal and state investigations, fines and large financial settlements, including the payment of $1.6 million dollars to 26 states over Citi’s sharing of customer lists and credit data with telemarketers.
-- Multinational Monitor, 12/01/2002
In September 2002 Citigroup investment banking division, Salomon Smith Barney, agreed to pay a $5 million fine to settle charges it issued "materially misleading" research reports on Winstar, a broadband telecommunications service provider that filed for bankruptcy protection in 2001. Reports from a Salomon Smith Barney analyst and his assistant praised Winstar but internal e-mails revealed the two were actually skeptical of the company, according to an investigation by the National Association of Securities Dealers. The company agreed to pay the fine without admitting or denying the finding of the investigation.
-- Associated Press, 09/23/2002
Source URL: none available
In September 2002, Citigroup agreed to repay customers $215 million to settle federal charges that its subsidiary Associates First Capital Corp. had manipulated people into buying overpriced mortgages and credit insurance. It is the biggest settlement involving consumer protection in the history of the Federal Trade Commission. The agreement allows two million consumers to receive cash refunds or reduced loan balances to help them to recover much of their losses. Citigroup does not admit to any wrong-doing by agreeing to the settlement.
-- Associated Press, 09/19/2002
Source URL: none available
Citigroup has failed to follow federal guidelines to prevent money laundering and has allowed as much as $800 million in suspicious Russian funds to flow through 136 accounts from 1991 through January 2000, according to the General Accounting Office. In a letter to the GAO in November 2000, Citigroup said it has found no evidence that it acted illegally, but it acknowledged lapses in enforcing its anti-money-laundering policies. The company said that it closed the accounts in question this year and tightened policies to prevent the problem from recurring. According to the GAO, Citigroup, along with Commercial Bank, accepted more than $1 billion from Delaware based U.S. corporations, which appeared to be shell companies created to move money from abroad into the U.S. banking system.
-- Washington Post, 11/30/2000
Source URL: none available
After a drawn-out appeals process, the Khulumani Support Group has won the right to have its case against more than 20 western companies heard in New York district court. The Khulumani Group originally brought suit in the name of thousands of survivors and victims of the South African apartheid regime, claiming in 2002 that not only had the accused companies profited from the apartheid system, but had been directly involved in propping up the regime. The New York circuit court of appeal overturned a lower court ruling that dismissed the case, meaning that some of the most profitable companies in the world will have to confront allegations that they have been complicit in horrendous violations of human rights. Among the defendants are banking powerhouses Citigroup and JPMorgan Chase, automakers Daimler AG, Ford Motor Company and General Motors, oil companies BP, ExxonMobil, Shell Petroleum, Chevron and finally, technology giant IBM.
-- Khulumani Support Group, 10/13/2007
Source URL: www.khulumani.net/content/view/1637/23/