Associates First Capital Corporation

Citigroup Inc.

Logo used since 2007
Company type	Public
Industry	Financial services
Founded	October 8, 1998 (1998-10-08) (merger of Citicorp and Travelers)
Headquarters	New York City , United States
Area served	Worldwide
Key people	John S. Reed (co-chairman, former CEO), Sandy Weill (co-chairman, former CEO), Joe J. Plumeri (former CEO of Citibank North America)
Products	Investment banking, corporate banking, treasury and trade solutions, securities services, retail banking, credit cards, wealth management
Website	www.citigroup.com

Citigroup Inc.—commonly known as Citi (styled as citi)—is a multinational American financial services corporation and investment bank based in New York City. Established in 1998 through the merger of Citicorp, the holding company for Citibank, and Travelers—which was later separated in 2002—Citigroup stands as a prominent global financial entity.

It holds the position of the third-largest bank in the United States by total assets and is counted among the nation's Big Four banks, alongside JPMorgan Chase, Bank of America, and Wells Fargo. Designated as a systemically significant financial institution by the Financial Stability Board, Citigroup is frequently described as "too big to fail" and ranks among the eight major global investment banks known as the Bulge Bracket. On the Fortune 500 list, it is placed 36th, while in the 2023 edition of the Forbes Global 2000, it achieved the 24th spot.

The company’s operations are divided into two primary segments: Institutional Clients Group (ICG), which delivers services such as investment banking, corporate banking, treasury and trade solutions (TTS), and securities services including custodian banking; and Personal Banking and Wealth Management (PBWM), encompassing Citibank—a leading retail bank and the third-largest credit card issuer in the U.S.—along with its wealth management divisions.

History

Citigroup came into existence on October 8, 1998, following the union of Citicorp—the parent company of Citibank—and Travelers, forming what was then the world’s largest financial services firm.

Citicorp (1812–1985)

Citibank, originally named City Bank of New York, was chartered by the State of New York on June 16, 1812, with an initial capital of $2 million. It began operations on September 14 that year, primarily serving New York merchants, with Samuel Osgood appointed as its first president. After enduring the Panic of 1837, control passed to Moses Taylor. In 1865, upon joining the U.S. national banking system, it was renamed The National City Bank of New York. Leadership transitions involving Percy Rivington Pyne I and James Stillman helped it become New York City's largest bank after the Panic of 1893 and by 1895, it was the largest bank in the United States.

The bank played a foundational role in establishing the Federal Reserve Bank of New York in 1913 and opened the first foreign branch of any U.S. bank in Buenos Aires in 1914. Its acquisition of International Banking Corporation in 1918 propelled its assets beyond $1 billion. Throughout the 1920s, during U.S. occupation of Haiti, it profited significantly from Haiti’s loan obligations, reaching status as the world’s largest commercial bank by 1929. Citibank introduced several innovative financial products over time: compound interest on savings accounts (1921), unsecured personal loans (1928), customer checking accounts (1936), and negotiable certificates of deposit (1961).

In 1955, it merged with First National Bank of New York to become First National City Bank of New York; "New York" was removed from its name in 1962. The bank diversified into leasing and credit cards and pioneered U.S. dollar-denominated certificates of deposit in London—the first new negotiable instrument issued there since 1888. Its First National City Charge Service credit card debuted in 1967 and eventually evolved into MasterCard. That same year, it restructured as a single-bank holding company called First National City Corporation or "Citicorp." The "Citibank" designation had been used since the 1860s as its telegraphic code.

Under CEO Walter B. Wriston, who took charge in 1974, Citicorp officially adopted its current name; First National City Bank was renamed Citibank in 1976. Shortly thereafter, it introduced Citicard and became a pioneer in offering round-the-clock ATM access. With CEO John S. Reed assuming leadership in 1984, Citibank grew to become America’s largest bank and leading global issuer of credit and charge cards, expanding into more than 90 countries and becoming a founding member of London's CHAPS clearing system.

Travelers Group (1986–2007)

Before merging, Travelers Group functioned as a multifaceted financial conglomerate under the leadership of CEO Sandy Weill. Its roots trace back to Commercial Credit, once part of Control Data Corporation, which Weill took private in 1986. Two years afterward, he facilitated the acquisition of Primerica Financial Services, a company that had already incorporated life insurer A L Williams and brokerage firm Smith Barney. The merged organization adopted the Primerica name and pursued a "cross-selling" approach to maximize the use of services across its subsidiaries. Non-core businesses were subsequently divested.

In September 1992, following significant setbacks from poor real estate ventures and damages caused by Hurricane Andrew, Travelers Insurance entered into a strategic partnership with Primerica. This alliance culminated in a December 1993 merger forming Travelers Inc., which expanded its capabilities to include property & casualty as well as life & annuities underwriting. The iconic Travelers red umbrella emblem was extended across all divisions. Around this time, Travelers also acquired Shearson Lehman, a retail brokerage and asset management firm previously managed by Weill, integrating it with Smith Barney.

Ownership of Salomon Brothers (1997–2003)

In November 1997, Travelers Group—renamed in April 1995 after merging with Aetna Property and Casualty—completed a $9 billion acquisition of Salomon Brothers, a premier bond dealer and major bulge bracket investment bank. This move complemented the existing strengths of Travelers/Smith Barney by adding fixed-income expertise and institutional client services to Smith Barney’s retail and equity capabilities. Salomon Brothers merged Smith Barney into its securities division, forming Salomon Smith Barney; this unit later incorporated Citicorp's former securities businesses. The Salomon Smith Barney brand was discontinued in October 2003 following reputational damage from financial scandals.

Merger of Citicorp and Travelers (1998–2001)

On April 6, 1998, Citicorp and Travelers announced their intention to merge, aiming to capitalize on each other's customer bases for financial product offerings.

Travelers Group acquired all outstanding shares of Citicorp, resulting in shareholders from both companies holding roughly equal stakes in the new combined entity. The merged organization maintained Citicorp’s "Citi" branding while adopting Travelers’ red umbrella logo until 2007.

John S. Reed and Sandy Weill, chairmen of Citicorp and Travelers respectively, assumed roles as co-chairmen and co-CEOs of the newly formed Citigroup, Inc., though their differing leadership styles raised some concerns.

The Glass–Steagall Act initially barred banks from merging with insurance underwriters, necessitating divestitures within two to five years. Anticipating regulatory shifts, Weill prepared for changes that arrived with the Gramm-Leach-Bliley Act of 1999, enabling financial conglomerates to provide commercial banking, investment banking, insurance underwriting, and brokerage services under one roof.

Joe J. Plumeri managed the post-merger integration and served as CEO of Citibank North America, overseeing a network of 450 branches. Known for his forthright approach, Plumeri increased earnings from $108 million to $415 million within a single year before his unexpected retirement in January 2000.

In 2000, Citigroup expanded by acquiring Associates First Capital Corporation for $31.1 billion in stock. Formerly owned by Gulf+Western and Ford Motor Credit Company, Associates faced allegations of predatory lending practices. Citi resolved these issues by settling with the Federal Trade Commission for $240 million to compensate customers affected by tactics such as mortgage "flipping" and misleading marketing.

Further expansion occurred in 2001 when Citigroup purchased European American Bank for $1.9 billion and Banamex for $12.5 billion, enhancing its footprint in both U.S. and Mexican markets.

Divestiture of Travelers (2002)

In 2002, Citigroup separated its Travelers Property and Casualty insurance underwriting division. This decision was influenced by the seasonal fluctuations in Travelers' earnings and its susceptibility to major disasters, which adversely affected Citigroup’s stock performance. Furthermore, direct insurance sales proved difficult due to customers’ preference for broker intermediaries.

Two years later, in 2004, Travelers combined forces with The St. Paul Companies Inc., creating The St. Paul Travelers Companies. Citigroup maintained ownership of its life insurance and annuities segments until their sale to MetLife in 2005.

Although Citigroup divested Travelers Insurance, it continued using the red umbrella emblem until 2007, when it transferred the logo back to St. Paul Travelers, which subsequently rebranded as Travelers Companies. Citigroup adopted the "Citi" brand identity for itself and most of its subsidiaries, excluding Primerica and Banamex.

Subprime Mortgage Crisis Impact (2007)

Citigroup faced substantial losses during the 2007 subprime mortgage crisis due to its significant exposure to problematic mortgages through collateralized debt obligations (CDOs) and inadequate risk management. The firm’s risk assessment models failed to predict a nationwide housing market collapse or widespread loan defaults. Oversight was further weakened by close relationships between trading chief Thomas Maheras and senior risk officer David Bushnell.

Ex-Treasury Secretary Robert Rubin, who played a key role in repealing the Glass–Steagall Act—which had allowed the 1998 merger of Travelers and Citicorp—and served on Citigroup’s board, advocated for increased involvement in mortgage-backed securities (MBS) and CDOs within subprime markets.

Starting in June 2006, Senior Vice President Richard M. Bowen III, Consumer Lending’s chief underwriter, alerted the board to rising risks in mortgage operations managing $90 billion annually. Initially, 60% of mortgages were defective; by 2007, this figure exceeded 80%, including fraudulent loans. Bowen persistently raised concerns, culminating in a November 2007 email to Chairman Rubin and executives urging an independent investigation that exposed internal control failures dating back to 2005. Despite Sarbanes-Oxley compliance obligations, Citigroup disregarded these warnings and eventually marginalized Bowen.

As the crisis progressed, Citigroup announced a workforce reduction of 17,000 positions (approximately 5%) in April 2007 aimed at cost-cutting and boosting stock value. Even after Bear Stearns’ collapse in mid-2007, Citigroup underestimated CDO-related risks within its evaluations. By January 2008, worsening conditions prompted consideration of additional layoffs ranging from 5% to 10% of its 327,000 employees.

Unsuccessful Acquisition Attempt of Nikko Asset Management

In 2007, Citigroup purchased a controlling 61% interest in Nikko Asset Management for $7.7 billion, representing the largest foreign acquisition of a Japanese firm at that time. Later that year, it sought to acquire the remaining shares for $4.6 billion to secure full ownership. However, by 2009, Citigroup exited the Japanese market by selling its stake to Sumitomo Trust and Banking Co., a unit of Sumitomo Mitsui Trust Holdings, for $795 million.

Collapse and US government intervention (2008)

By the middle of 2008, Citigroup faced severe financial distress and was declared insolvent by November, despite having received $25 billion from the federal Troubled Asset Relief Program (TARP). On November 17, 2008, the firm disclosed intentions to eliminate approximately 52,000 positions in addition to the 23,000 layoffs earlier that year. This announcement followed four straight quarters of losses and projections indicating no profitability before 2010. The company's market capitalization fell sharply from $300 billion two years prior to just $6 billion, with total workforce reductions surpassing 100,000 employees.

Stock prices fell below $1.00 on the New York Stock Exchange, prompting a government bailout approval on November 24, 2008, designed to stabilize Citigroup and halt further deterioration. The rescue plan was jointly unveiled by the U.S. Treasury Department, Federal Reserve, and FDIC, aiming to safeguard taxpayer interests and reinforce the financial system while securing substantial control over Citigroup’s operations.

TARP funding

Citigroup received the largest portion of TARP assistance among U.S. banks, exceeding all others in bailout size. The government guaranteed roughly $306 billion in loans and securities while directly injecting about $20 billion in capital. This included $20 billion in TARP funds plus an additional $25 billion disbursed in October. Under the agreement, the Treasury, Federal Reserve, and FDIC agreed to absorb 90% of losses on a $335 billion portfolio after Citigroup covered the initial $29 billion in losses—allocated as $5 billion by the Treasury, $10 billion by the FDIC, and the remainder by the Federal Reserve. These assets remained on Citigroup’s balance sheet under a protective ring-fencing structure.

In return, Citigroup issued $27 billion worth of preferred shares and warrants to the U.S. Treasury, granting it extensive oversight over banking activities. Additionally, Citigroup pledged to modify mortgages following FDIC guidelines established after the IndyMac failure to aid homeowners in retaining their properties. Executive compensation was limited, and dividend distributions were reduced to a nominal $0.01 per share.

Critics such as Michael Lewis and David Einhorn described the $306 billion guarantee as an "undisguised gift," arguing that it lacked justification based on any genuine crisis.

According to The Wall Street Journal, government intervention prevented turmoil by stabilizing Citigroup’s Global Transactions Services division (now known as Treasury and Trade Solutions). Former CEO Vikram Pandit cautioned that a Citigroup bankruptcy would have worldwide repercussions affecting payrolls across 100 countries.

New York Attorney General Andrew Cuomo disclosed that after receiving $45 billion in TARP funds in late 2008, Citigroup paid hundreds of millions in bonuses to more than 1,038 employees. This included multiple bonuses exceeding one million dollars and some surpassing $10 million. Following public backlash and government ownership of common stock shares, restrictions on compensation and bonuses were implemented from February 2009 through December 2010.

In 2009, Jane Fraser, then serving as CEO of Citi Private Bank, discontinued commission-based remuneration for bankers selling investment products to strengthen the bank’s image as an impartial wealth management advisor rather than a product vendor.

Establishment of Citi Holdings (2009)

On January 16, 2009, Citigroup disclosed a restructuring that divided the company into two segments: Citicorp, which served retail and institutional clients, and Citi Holdings, which encompassed brokerage and asset management units marked for disposal. Citi Holdings included non-core assets, mainly consisting of U.S. mortgage portfolios, along with subsidiaries such as OneMain Financial and Smith Barney. With approximately $156 billion in GAAP assets—about 8% of Citigroup's total—the portfolio was composed of 59% North American mortgages, 18% operational businesses, 13% special asset pools, and 10% other holdings. The division’s primary objective was to systematically reduce non-essential businesses and assets, targeting a break-even financial position by 2015.

On February 27, 2009, the U.S. government converted $25 billion of financial assistance into common equity, acquiring a 36% ownership stake in Citigroup, in addition to providing a $45 billion credit facility designed to avert bankruptcy. The government guaranteed losses on more than $300 billion of distressed assets and immediately injected $20 billion in capital. Executive compensation was limited to $500,000 annually, with any excess paid in restricted stock until the government’s aid was fully repaid. Furthermore, the government secured half of the seats on Citigroup’s board and gained authority to dismiss senior executives for unsatisfactory performance. By December 2009, the government’s shareholding had declined to 27% following Citigroup’s sale of $21 billion in stock—the largest U.S. equity offering at that time. By the end of 2010, Citigroup had repaid all government assistance in full, generating a $12 billion profit for taxpayers. Subsequently, restrictions on executive pay and government oversight were lifted once the remaining shares were sold.

On June 1, 2009, Citigroup was removed from the Dow Jones Industrial Average due to the extent of government ownership and was replaced by Travelers Companies.

Disposition of Smith Barney (2009)

Smith Barney functioned as Citi’s global private wealth management division, providing brokerage, investment banking, and asset management services internationally. With a network exceeding 800 offices, it managed approximately 9.6 million client accounts domestically and oversaw $1.562 trillion in global client assets.

On January 13, 2009, Citigroup announced a joint venture combining Smith Barney with Morgan Stanley Wealth Management, receiving $2.7 billion and acquiring a 49% interest in the partnership.

In June 2013, Citi divested its remaining 49% ownership in Smith Barney to Morgan Stanley Wealth Management for $13.5 billion following an evaluation conducted by Perella Weinberg.

Profitability Restoration and Exit from Government Ownership (2010)

Citigroup achieved profitability in 2010 for the first time since 2007, reporting net income of $10.6 billion compared to a loss of $1.6 billion in the prior year. Later that year, the Treasury sold its remaining shares in Citigroup, realizing a net gain of $12 billion for taxpayers. This outcome was partly facilitated by a unique IRS tax provision that allowed the Treasury to profitably sell shares while still holding them.

Growth of Retail Banking Services (2011)

In 2011, Citi introduced digitized Smart Banking branches across Washington D.C., New York City, Tokyo, and Busan as part of an initiative to modernize its branch network. Additionally, new sales and service centers commenced operations in Moscow and St. Petersburg. Citi also launched round-the-clock Citi Express kiosks in Colombia and expanded its retail footprint to thirteen cities within China.

Growth in credit card services (2011)

In 2011, Citi Branded Cards introduced multiple new offerings such as the Citi ThankYou, Citi Executive/AAdvantage, and Citi Simplicity cards within the United States. It also established partnership credit cards across Latin America with Avianca, Banamex, and AeroMexico, alongside launching a merchant loyalty initiative in Europe. Significantly, Citibank became the first and sole foreign bank authorized by Chinese regulators to issue credit cards under its own brand without collaborating with local state-owned financial institutions.

Joint venture in Chinese investment banking (2012)

Citi's Global Markets division joined forces with Orient Securities in 2012 to create Citi Orient Securities, a brokerage firm based in Shanghai focused on equity and debt markets tailored for China. By January 2019, Citigroup divested its share to its Chinese partner, aiming to concentrate on developing a majority-controlled enterprise.

Federal Reserve stress test outcomes (2012–2016)

Citigroup did not pass the Comprehensive Capital Analysis and Review stress tests in 2012, primarily due to an aggressive capital return strategy and riskier international loan portfolio compared to domestic lending. In 2013, Jane Fraser succeeded Sanjiv Das as the head of CitiMortgage, marking a renewed strategic emphasis on mortgage services.

The institution again failed the stress tests in 2014 because of qualitative deficiencies but successfully passed in both 2015 and 2016, reflecting stronger capital positions and adherence to regulatory standards.

In February 2016, Citigroup was sued for $1.1 billion by lender Rabobank and other investors over allegations linked to the bankruptcy of Mexican oil services company Oceanografia SA, accusing Citigroup of accepting fraudulent work invoices. Ultimately, the courts ruled in favor of Citigroup.

By April 2016, Citigroup revealed plans to wind down its diminishing bad bank segment, Citi Holdings, as part of a broader strategic realignment.

Napier Park Global Capital spin-off (2013)

During Michael Corbat’s tenure as CEO, Citi Capital Advisors (formerly Citi Alternative Investments) operated as a hedge fund delivering varied investment approaches. To comply with the Volcker Rule’s restriction limiting bank ownership in hedge funds to 3%, Citi spun off this unit in 2013, transferring majority control to its management team. This move resulted in the formation of Napier Park Global Capital, a $6.8 billion hedge fund employing over 100 staff across New York and London, led by Jim O’Brien and Jonathan Dorfman.

Reduction of consumer banking footprint (2014)

In October 2014, Citigroup withdrew from consumer banking operations in eleven countries including Costa Rica and Peru, as well as consumer finance activities in Japan and South Korea, thereby simplifying its global retail banking network.

2015 onwards

In May 2015, Citi divested its margin foreign exchange operations, including CitiFX Pro and TradeStream, selling them to FXCM and SAXO Bank. Nevertheless, under the leadership of James Bindler, who was appointed global head of foreign exchange in 2014, Citi maintained its position as a prominent participant in the forex market.

Later that year, in November 2015, Springleaf completed the acquisition of OneMain Financial from Citigroup.

By February 2016, Citi had offloaded its retail and commercial banking branches in Panama and Costa Rica to Scotiabank for $360 million. This transaction encompassed 27 branches serving approximately 250,000 customers; however, Citi retained its corporate and institutional banking as well as wealth management services within those countries. On April 1, Citi became the sole issuer of credit cards bearing the Costco brand. Additionally, in April 2016, regulatory authorities approved Citi’s "living will," a strategic plan detailing how it would methodically wind down operations during a financial crisis.

During the COVID-19 pandemic, Citi extended support to cardholders by waiving late payment fees and issued one-time payments of $1,000 to lower-income employees worldwide, including a S$1,200 disbursement in Singapore.

In August 2020, Citi erroneously transferred $900 million to creditors of its client Revlon; recovery attempts remained unsuccessful as of mid-2022. Subsequently, in October 2020, U.S. regulatory bodies imposed a $400 million fine on Citigroup for shortcomings in risk management controls and mandated technological enhancements with a four-month deadline for submitting an updated compliance plan.

In November 2023, amid CEO Jane Fraser’s broader corporate restructuring aimed at addressing stock performance and escalating expenses, Citigroup initiated workforce reductions targeting at least 10% of its staff—approximately 20,000 positions—across various divisions under the codename "Project Bora Bora." This reorganization also involved establishing five new business units and saw several senior executives depart.

In 2025, Citigroup agreed to divest its wealth alternatives division, Citi Global Alternatives, selling it to iCapital, a fintech company based in New York. The financial terms of the deal were not publicly disclosed.

Combination of Markets and Securities Services (2019)

In 2019, Citi consolidated its Global Markets and Securities Services segments into a unified Markets & Securities Services division. This integration combined trading, execution, custody, clearing, financing, and hedging functions under one umbrella.

Shrinking of consumer banking unit (2021–2025)

Jane Fraser assumed the role of CEO in February 2021, becoming the first woman to lead one of the Big Four banks.

By April 2021, Citi announced plans to exit consumer banking operations across 13 countries including Australia, China, India, and Russia. In January 2022, United Overseas Bank acquired Citi’s consumer businesses in Indonesia, Malaysia, Thailand, and Vietnam for approximately $4.9 billion. Later in August 2023, DBS Bank purchased Citi Consumer Taiwan for $706 million. Following these market exits, Citi continues consumer banking services in the United States, Canada, Europe, Hong Kong, Singapore, London, and the United Arab Emirates.

Additionally, in January 2022 Citi declared intentions to withdraw from Mexican consumer banking and small- to mid-sized business operations. By March 2022, the bank reported exposure exceeding $10 billion to Russian assets amidst ongoing geopolitical tensions.

In September 2022, Citi announced plans to phase out its UK retail banking activities. By January 2024, it revealed plans for a workforce reduction involving 20,000 jobs. At the June 2024 Investor Day event, CEO Fraser highlighted growth prospects within the profitable Securities Services segment.

Starting October 2024, Citi began transferring significant portions of its financial infrastructure to Google Cloud as part of an AI-focused modernization initiative.

In December 2024, both Citigroup and Bank of America withdrew from the Net-Zero Banking Alliance (NZBA).

By March 2025, Citi aimed to reduce reliance on external IT contractors by up to half and replace them with permanent employees to enhance risk controls and data governance following regulatory penalties totaling $136 million and a recent $22.9 million fraud involving contractors. The bank planned to decrease vendor numbers from 144 down to 50 and relocate IT operations from Rutherford to Jersey City. During this period, the company’s stock dropped by 0.7%, culminating in a total loss of 4.4% for the year.

Role in regulating firearm sales

In 2018, The New York Times highlighted that under CEO Michael Corbat, Citi adopted credit card policies that limited gun purchases by customers under the age of 21, demonstrating the company's position on firearm regulation.

New York City

Among Citi's principal offices are:

• 388 Greenwich Street in Manhattan, serving as its worldwide headquarters
• Citigroup Center located in Midtown Manhattan
• 787 Seventh Avenue in Manhattan
• 666 Fifth Avenue in Manhattan
• 399 Park Avenue in Manhattan
• 485 Lexington Avenue in Manhattan
• One Court Square situated in Long Island City, Queens

Citigroup EMEA

Citigroup Centre at Canary Wharf, London

Citibank Vietnam

Citi initially established a branch in Vietnam prior to 1975 and reentered the market in 1993 with a representative office based in Hanoi. The first fully operational U.S. bank branch was set up in 1994. Following the launch of a Ho Chi Minh City branch in 1998, Citi broadened its retail banking operations across Vietnam by 2009, strengthening its foothold in this developing economy.

Naming rights for Citi Field

Through a $400 million, two-decade contract starting with the stadium’s inauguration in 2009, Citigroup secured the naming rights to Citi Field, the home stadium of the New York Mets Major League Baseball team.

Sioux Falls operations

In 1981, Citibank transferred its credit card processing to Sioux Falls, South Dakota, after the state eliminated caps on interest rates.

Regulatory penalties, litigation, and arbitration

Japanese authorities penalized Citibank Japan twice—in 2004 and 2009—for providing loans to clients involved in stock manipulation schemes and for insufficient anti-money laundering measures, resulting in suspended retail banking functions.

On March 23, 2005, the National Association of Securities Dealers (currently known as Financial Industry Regulatory Authority - FINRA) imposed a $21.25 million fine on Citigroup Global Markets due to breaches related to suitability and supervision during mutual fund sales between 2002 and 2003, particularly involving Class B and C shares.

On June 6, 2007, FINRA levied over $15 million in penalties and restitution against Citigroup Global Markets for distributing misleading documentation and failing to provide adequate disclosures at retirement seminars targeting BellSouth employees in North Carolina and South Carolina.

In July 2010, Citigroup consented to a $75 million settlement addressing civil allegations that it misrepresented its exposure to risky mortgage assets, having understated subprime mortgage holdings by more than $37 billion.

An arbitration tribunal ruled in April 2011 that Citigroup Inc. must pay $54.1 million for losses stemming from municipal securities funds that collapsed during the 2007–2008 financial crisis.

In August 2012, Citigroup resolved an investor lawsuit with a nearly $25 million payment over claims of misrepresenting mortgage-backed securities sold in 2007.

February 2012 saw Citigroup disbursing $158.3 million to settle accusations that it falsely certified loan quality through its CitiMortgage division to qualify for Federal Housing Administration insurance; this case originated from an internal whistleblower.

Also that month, Citigroup joined the five largest mortgage servicers entering the landmark National Mortgage Settlement, committing approximately $26 billion toward homeowner relief and payments to state and federal authorities. This agreement established 305 new standards for mortgage servicing practices.

In 2014, Citigroup reached a $7 billion settlement resolving allegations that it deceived investors regarding defective mortgage-backed securities prior to the financial downturn. The agreement acknowledged that such misconduct contributed to increased market share and profits but did not eliminate the possibility of criminal prosecutions.

In July 2015, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency fined Citigroup $70 million and mandated payments totaling $700 million to customers due to unlawful marketing tactics involving credit card add-on products like credit monitoring and debt protection services.

In January 2017, Citigroup Global Markets Inc. was penalized with a $25 million fine by the Commodity Futures Trading Commission for engaging in order spoofing within U.S. Treasury futures markets and failing to adequately supervise employees involved in these activities.

Bankruptcies involving Enron, WorldCom, and Global Crossing

On October 22, 2001, Citigroup was sued for breaching federal securities regulations by inaccurately reporting its exposure related to Enron in the 2001 Annual Report and not fully revealing the legal obligations arising from structured finance transactions with Enron. In 2003, Citigroup resolved these claims by paying $145 million in fines and penalties to both the Securities and Exchange Commission and the Manhattan district attorney’s office.

In 2004, Citigroup agreed to a pre-tax settlement of $2.65 billion ($1.64 billion after-tax) concerning its involvement in underwriting stocks and bonds for WorldCom, which had collapsed due to an accounting fraud scandal.

On February 5, 2002, a lawsuit was filed against Citigroup for providing misleading information to investors about the financial results and revenues of Global Crossing. By 2005, Citigroup settled the allegations of issuing inflated research reports and failing to disclose conflicts of interest with a payment of $75 million.

Additionally, Citigroup paid $2 billion in 2005 to settle a lawsuit initiated by Enron investors, followed by a $1.66 billion settlement with Enron creditors in 2008.

On November 8, 2007, Citigroup faced a lawsuit over financial misstatements related to more than two years of income and a business segment. The case was settled in 2012 for $590 million.

Senior leadership

• Chairman: John Dugan (appointed January 2019)
• Chief executive officer: Jane Fraser (appointed March 2021)
• Chief financial officer: Mark Mason (appointed February 2019)

Former chairmen since formation

This list includes chairmen from Citigroup’s establishment in 1998.

1. John Reed and Sandy Weill (1998–2000)
2. Sandy Weill (2000–2006)
3. Charles Prince (2006–2007)
4. Sir Win Bischoff (2007–2009)
5. Dick Parsons (2009–2012)
6. Michael O'Neill (2012–2019)

Former chief executives since 1998

1. Sandy Weill (1998–2003)
2. Charles Prince (2003–2007)
3. Vikram Pandit (2007–2012)
4. Michael Corbat (2012–2021)

Financial figures

Year	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Revenue	80.077	86.327	77.300	51.599	80.285	85.749	77.261	69.190	76.419	76.882	77.277	70.797	72.444	72.854	75.067	75.501	71.884	75.338	78.462	81.139
Net income	24.589	21.538	3.617	(27.684)	(1.606)	10.602	11.215	7.541	13.673	7.313	17.242	14.912	(6.798)	18.045	19.401	11.047	21.952	14.845	9.228	12.682
Assets	1,494	1,884	2,187	1,938	1,856	1,914	1,874	1,865	1,880	1,843	1,823	1,809	1,875	1,917	1,951	2,260	2,291	2,416	2,412	2,353
Headcount	296	327	375	323	265	260	266	259	251	241	231	219	209	204	210	210	223	240	239	229

Note: Figures are expressed in billions of USD for financial data; employee numbers are in thousands; information derived from SEC Form 10-K filings covering years from 2005 through 2024.

Ownership

As of December 2023, institutional investors collectively hold nearly 30% of Citigroup's shares, with major stakeholders including:

• The Vanguard Group (8.71%)
• BlackRock (8.68%)
• State Street Corporation (4.34%)
• Berkshire Hathaway (2.89%)
• Kingdom Holding Company (2.2%)
• Geode Capital Management (1.95%)
• Morgan Stanley (1.49%)
• BNY Mellon (1.32%)
• Fisher Investments (1.30%)
• Massachusetts Financial Services (1.14%)
• Northern Trust (1.01%)

Criminal cartel allegations in Australia

On June 1, 2018, the Australian Competition and Consumer Commission (ACCC) revealed plans to file criminal cartel charges against ANZ Bank, its Group Treasurer Rick Moscati, Deutsche Bank, Citigroup, along with several individuals.

Investment research conflict of interest

In December 2002, Citigroup agreed to pay $400 million as part of a broader $1.4 billion settlement involving ten banks accused of producing biased investment research. The settlement mandated the separation of investment banking activities from research departments and prohibited IPO share allocations.

2004 Citigroup government bond trading controversy

Citigroup attracted criticism for its impact on the European bond market when it rapidly sold €11 billion in bonds on August 2, 2004, causing prices to fall sharply before repurchasing the securities at reduced prices via the MTS Group platform.

Plutonomy analysis report

A confidential 2005 report by Citi global strategists examined wealth distribution in Anglo-American economies (US, UK, Canada), highlighting the growing concentration of wealth among the top 1% compared to the bottom 60%. It identified factors such as advancements in biotechnology and pro-capitalist policies as key drivers behind the increased affluence of the wealthy, while noting limited emphasis on middle-class economic conditions.

Terra Securities controversy

In November 2007, Citigroup's connection to the Terra Securities scandal came to light, revealing the bank’s involvement in high-risk financial activities.

Charges of unauthorized transfers from client accounts

By August 2008, Citigroup consented to pay close to $18 million in reimbursements and penalties to resolve claims brought by California Attorney General Jerry Brown that the bank had improperly shifted funds from credit card accounts into its general reserves without obtaining customer approval. Approximately $14 million was refunded to around 53,000 customers across the country. An investigation lasting three years uncovered that between 1992 and 2003, Citigroup employed a computerized "sweep" mechanism to transfer positive balances without informing account holders. Brown asserted that Citigroup "deliberately took money from its clients," including vulnerable populations, and disregarded whistleblower alerts dating back to 2001.

Executive pay package rejected by shareholders

During Citi’s 2012 annual meeting on April 17, about 55% of shareholders voted against the proposed executive compensation plan. The California Public Employees' Retirement System, a prominent activist investor, criticized the company for not adequately linking executive rewards to actual performance. This shareholder dissent triggered legal actions targeting Citi’s CEO and board members and heightened examination of the firm’s executive remuneration policies.

Futures market manipulation allegations

In January 2017, regulatory authorities imposed a $25 million fine on Citigroup following findings that five traders manipulated U.S. Treasury futures over 2,500 times between July 2011 and December 2012. The bank faced reproach for insufficient oversight and failing to implement systems capable of detecting spoofing—placing deceptive orders designed to mislead other market participants.

Suspected money laundering involving Raul Salinas

A 1998 General Accounting Office report criticized Citibank for its handling of funds linked to Raul Salinas de Gortari, brother of former Mexican president Carlos Salinas. The bank facilitated intricate transactions that concealed the origins of these funds and accepted Salinas as a client without adequate due diligence, thereby breaching its "know your customer" protocols.

Inadequate risk management practices

In 2020, Citigroup agreed to a $400 million payment to federal regulators due to ongoing deficiencies in its risk management framework. The Federal Reserve and the Office of the Comptroller of the Currency highlighted "unsafe and unsound banking practices" and noted Citi's failure to address persistent issues over time.

Additionally, the bank was implicated in permitting illicit funds to flow through its accounts. In 2017, prosecutors alleged that drug traffickers used Citi’s Banamex USA division to transfer illegal proceeds from Mexico into the United States, resulting in a $97 million settlement. In 2018, Citi paid $70 million to resolve shortcomings in its anti-money laundering controls.

In June 2024, agents from the U.S. Drug Enforcement Administration underscored continued exploitation of Citibank’s weak controls by money launderers associated with the Sinaloa Cartel.

Anti-Armenian discrimination

In 2023, the Consumer Financial Protection Bureau (CFPB) imposed a $24.5 million penalty on Citigroup and mandated $1.4 million in restitution to Armenian Americans, citing unlawful discrimination through the denial of credit cards between 2015 and 2021. The CFPB determined that Citigroup staff applied additional scrutiny based on surname suffixes such as -ian or -yan, which are typical in Armenian names, without revealing this screening method in their communications.

Lobbying

From 1998 through 2014, Citigroup allocated close to $100 million towards federal lobbying efforts. By 2008, it stood as the 16th highest political donor in the United States. Between 1989 and 2006, contributions from individuals associated with the firm exceeded $23 million, nearly evenly divided between Democrats (49%) and Republicans (51%). Matthew Vadum of the conservative Capital Research Center observed that in 2003, Citigroup's foundation provided substantially more funding to left-leaning organizations.

In 2014, Citigroup's Political Action Committee (PAC) donated roughly $804,000 to congressional campaigns, supporting 162 House members—72 of whom were Democrats—with average donations around $5,000 per recipient. Many Democrats who endorsed the 2015 Spending bill had received PAC contributions from Citigroup dating back to 2010. That year’s donations were almost evenly split between parties and included maximum allowable contributions to the Democratic Congressional Campaign Committee and centrist Democratic groups advocating for key legislation. Prominent beneficiaries included House Democratic Whip Steny Hoyer and Representatives Jim Himes and Debbie Wasserman Schultz.

Public and governmental relations

In 2009, former chairman Richard Parsons enlisted veteran Washington consultant Richard F. Hohlt to provide guidance on U.S. government relations, though Hohlt was not officially designated as a lobbyist. Despite speculation that Hohlt’s efforts targeted the Federal Deposit Insurance Corporation (FDIC), he denied any engagement with the agency. Some ex-regulators expressed concerns over his involvement due to his past role during the 1980s savings and loan crisis, but Hohlt highlighted his expertise as an asset in navigating contemporary financial issues.

The following year, Citigroup appointed Edward Skyler, formerly of New York City government and Bloomberg L.P., to oversee senior public and governmental relations. Prior to this appointment, three other candidates were considered: NY Deputy Mayor Kevin Sheekey, political strategist for Mayor Michael Bloomberg; Howard Wolfson, previous communications director for Hillary Clinton’s presidential campaign and Bloomberg’s re-election effort; and Gary Ginsberg, who had worked at News Corporation before joining Time Warner.

On March 21, 2018, Citigroup declared a new policy that restricts its business clients from engaging in certain firearm-related transactions. This policy does not apply to clients issuing credit cards underwritten by Citigroup or those utilizing banking services such as loans or capital raising activities.

Present

• Jane Fraser, a Scottish-American leader in banking, assumed the role of CEO in March 2021. Prior to this, she was president of Citi and led Global Consumer Banking. Fraser joined Citigroup in 2004 following ten years at McKinsey & Company. Throughout her career, she has held four CEO positions, including leading Citigroup Latin America in 2015. She has been featured on Fortune's "Most Powerful Women in Business" list in 2014, 2015, and 2021, and has twice earned the title "Number 1 Woman to Watch" by American Banker.
• Mark Mason has occupied the position of chief financial officer (CFO) at Citigroup since 2019.
• Edward Skyler holds the position of executive vice president for Global Public Affairs at Citigroup since 2010; before this, he served as deputy mayor for operations in New York City.
• Edward L. Morse has overseen global commodities research beginning in 2011.
• Catherine L. Mann has been the chief economist since 2018.
• Manuel Falcó has acted as global head of investment banking since 2018.

Past

• Sanford I. Weill served as CEO from 1998 until 2003 and was identified by Time magazine as one of the figures linked to the financial crisis.
• Robert Rubin was an advisor and board member between 1999 and 2009, during which he earned $126 million.
• Charles Prince was CEO from 2003 to 2007; he is known for his comment that Citigroup was "still dancing" amid the unfolding financial crisis.
• Vikram Pandit held the CEO position from December 2007 through October 2012.
• Willem Buiter served as chief economist from 2010 until 2018.
• Michael Corbat was CEO from October 2012 until February 2021.
• Karen Peetz fulfilled the role of Chief Administrative Officer from 2020 to 2023.

See also

• Template:Portal inline
• Big Four banks

Further reading

• Langley, Monica (2004). Tearing Down the Walls. New York: Free Press. ISBN 0-7432-4726-4.
• Schull, Joseph, 100 Years of Banking in Canada: A History of the Toronto-Dominion Bank. Illustrated by Brad Smith. Vancouver: Copp Clark, . ix, 222 p.; ill.; 24 cm.