Citibank South Dakota, N.A.

Citibank, N.A.
	File:Citibank.svg Citibank logo
Company type	National Association (N.A.)
Industry	Banking, Financial services
Predecessor	City Bank of New York, First National City Bank of New York
Founded	June 16, 1812; 214 years ago in New York City, United States
Headquarters	New York City, United States
Area served	United States, 19 other countries
Products	Banking, credit cards, financial services
Parent	Citigroup

Citibank, N.A. (where "N. A." denotes "National Association"; branded as citibank) serves as the principal U.S. banking arm of Citigroup, a global financial services conglomerate.^[1] Established in 1812 under the name City Bank of New York, it was later known as First National City Bank of New York.^[2] Citibank maintains branches across 19 nations, with its U.S. presence focused in six metropolitan hubs: New York City, Chicago, Los Angeles, San Francisco, Washington, D.C., and Miami.^[3]

By 2023, Citibank stood as the third-largest banking institution in the United States based on total assets.^[4]

19th century

The City Bank of New York was inaugurated on June 16, 1812, with its initial president being the statesman and former Colonel, Samuel Osgood. After Osgood's passing in 1813, the presidency transitioned among various leaders such as William Few, Peter Stagg, Thomas Smith, Isaac Wright, and Thomas Bloodgood. Following the financial crisis of 1837, control shifted to Moses Taylor, who primarily utilized the bank as a treasury for his commercial enterprises. Subsequent presidents included Gorham A. Worth, Moses Taylor himself, Taylor’s son-in-law Percy Rivington Pyne I, and James Stillman.

In 1831, City Bank was victim to one of America’s earliest significant bank robberies when thieves James Honeyman and William J. Murray absconded with tens of thousands of dollars in banknotes along with 398 gold doubloons—equivalent to approximately $52 million in 2013 dollars.

The institution played an instrumental role in underwriting war bonds during both the War of 1812 and the American Civil War, underwriting $50 million in Union bonds. It was a founding participant of New York’s financial clearinghouse in 1853, pioneered the first foreign exchange department among U.S. banks in 1897, and managed a $5 million deposit related to the U.S. acquisition of the Philippines in 1899. In 1865, it joined the national banking framework under the name The National City Bank of New York. By 1868, it ranked among the nation’s largest banks and became New York City's leading bank following the Panic of 1893. By 1895, it had grown to become the largest bank in the United States.

20th century

In 1904, the bank contributed financing to the construction of the Panama Canal. By 1906, it held approximately 11% of federal government deposits and served as banker for Standard Oil. During the Panic of 1907, Chairman Stillman collaborated with J. P. Morgan and George Fisher Baker to stabilize markets.

Between 1910 and 1911, supported by the U.S. Department of State, Citibank led a consortium that gained control over Haiti’s sole commercial bank, Banque Nationale de la République d'Haïti, which functioned as Haiti’s treasury. The bank advocated for U.S. military intervention in Haiti in 1915 and imposed a $30 million loan on Haiti during this period; this arrangement yielded substantial profits throughout the 1920s.

Following enactment of the Federal Reserve Act, National City Bank became the first American national bank to establish an overseas branch in Buenos Aires in 1914. Its subsidiary International Banking Corporation (IBC), which merged into National City Bank in 1918, had earlier opened offices in London, Shanghai, and Calcutta. By 1919, it was the first U.S. bank to surpass $1 billion in assets.

By 1921, four national banks maintained branch offices within New York City including National City Bank. Charles E. Mitchell assumed presidency in that year and became chairman by 1929; under his leadership, the bank expanded rapidly to operate over one hundred branches across twenty-three countries by 1930. His aggressive expansion strategies are frequently cited as factors contributing to both the stock market crash of 1929 and subsequent Great Depression.

The Pecora Commission investigated Mitchell in 1933 concerning financial losses, excessive compensation practices, and tax avoidance schemes; this scrutiny led to his resignation. Senator Carter Glass notably attributed significant responsibility for the market collapse to Mitchell.

On December 24, 1927, its Buenos Aires headquarters suffered a bombing carried out by Italian anarchist Severino Di Giovanni amid an international campaign supporting Sacco and Vanzetti.

Between 1940 and 1941, branches located in Germany and Japan were shut down; by war's end in 1945, the bank managed $5.6 billion worth of Treasury securities for U.S. War Loan campaigns.

James Stillman Rockefeller took over as president in 1952 and chairman from 1959 until his retirement in 1967; he was a member of the Rockefeller family lineage. His cousin David Rockefeller led competitor Chase Manhattan Bank.

Following a merger with First National Bank in 1955, it was renamed The First National City Bank of New York before being shortened to First National City Bank (1962). The institution began recruiting from Harvard Business School (1957), financed production of South Pacific (1958), lost its Cuban branches due to nationalization efforts (1959), and appointed Franklin A. Thomas as its first African-American board member (1969).

The bank diversified into leasing services and credit card issuance; it introduced US dollar-denominated certificates of deposit at its London branch—the first new negotiable instrument introduced since 1888—and launched its credit card service called First National City Charge Service or "Everything Card" in 1967.

Walter B. Wriston assumed roles as chairman and CEO beginning in 1967.

Regarding credit cards, First National City Bank acquired Carte Blanche from Hilton Hotels in 1965 but divested it three years later under regulatory pressure. Its own "Everything Card" debuted in 1968 but was merged into Master Charge (now MasterCard) by 1969 due to marketing expenses. An additional attempt at creating an independent card brand named Choice Card operated from 1977 until its discontinuation in 1987 without notable success.

In that same year (1967), it restructured as a single-bank holding company named First National City Corporation ("Citicorp"). To avoid confusion with Cleveland-based National City Corp., especially amid Citi’s nationwide expansion while National City remained regional until its acquisition by PNC Financial Services in 2008, it adopted the name Citibank, N.A., in 1976.

In response to loan losses amounting to $3 billion primarily from Brazil and other emerging markets during the late '80s (1987), Citibank established a Polish subsidiary by 1990 and had become the world’s largest issuer of credit cards by 1994.

Throughout the decade of the '80s, Citibank introduced Citicard technology allowing customers to conduct transactions without using passbooks; branch locations were equipped with terminals enabling clients to access basic account details without teller assistance.

John S. Reed took over as CEO in 1984; during his fourteen-year tenure, Citibank expanded into the largest U.S.-based financial institution and global credit card issuer operating across more than ninety countries.

To circumvent stringent usury laws prevalent across many states during the late '70s and early '80s, Citibank chartered a subsidiary in South Dakota (1981), leveraging that state's favorable lending regulations permitting higher interest rates than elsewhere; this strategy proved lucrative for expanding consumer lending operations.

21st century

In 2005, Federated Department Stores, which is now known as Macy's, Inc., divested its consumer credit accounts to Citigroup. These credit cards were subsequently reissued under the Department Stores National Bank (DSNB) brand.

By 2013, Citibank had employed approximately 2,900 individuals in Sioux Falls, South Dakota, a factor contributing to the state holding the highest concentration of bank assets nationwide. That same year, Citibank expanded its portfolio by acquiring Best Buy's credit card accounts from Capital One.

On April 1, 2016, Citigroup became the sole issuer of credit cards bearing Costco’s brand.

Citibank’s private-label credit card unit, Citi Retail Services, manages store card issuance for prominent companies such as American Airlines, Best Buy, ConocoPhillips, Costco, ExxonMobil, The Home Depot, Sears, Shell Oil, and Staples.

Automatic teller machines

During the 1970s, Citibank was among the pioneers in the U.S. banking sector to deploy automatic teller machines (ATMs), enabling customers to access cash around the clock.

Expansion

In 2002, Citigroup—the parent company of Citibank—acquired Golden State Bancorp along with California Federal Bank for $5.8 billion, thereby increasing its market presence in California.

In 1999, Citibank encountered legal challenges due to allegations of improperly assessed late fees on credit cards.

Citigroup entered Texas’s retail banking market in August 2004 through the acquisition of First American Bank based in Bryan, Texas. This move added over 100 branches, $3.5 billion in assets, and roughly 120,000 customers within the state.

In 2006, Citibank expanded into Philadelphia by opening 23 branches but withdrew from this market in 2013 citing operational efficiency considerations.

That same year, Citigroup secured the naming rights for the New York Mets’ new stadium—Citi Field—committing $20 million annually over a 20-year period.

As of September 2020, Citibank’s U.S. branch network is predominantly located in major metropolitan regions including New York, Los Angeles, San Francisco, Sacramento, San Diego, Washington DC, Las Vegas, Miami, and Chicago. California holds the largest number of branches with a total of 292 locations.

In 2022, Citi revealed plans to reintroduce retail banking services in Dallas by establishing an "experience center" at Berkshire Court. Specific operational details have not been disclosed as the bank opted not to comment further.

2007–2009 losses and cost-cutting measures by parent Citigroup

On April 11, 2007, Citigroup announced workforce reductions involving 17,000 positions—approximately 8% of its total employees.

Following significant losses tied to subprime lending exposure, Charles Prince stepped down as chairman and CEO of Citigroup on November 4, 2007. Former U.S. Treasury Secretary Robert Rubin assumed the chairman role and appointed Vikram Pandit as CEO.

On November 5, 2007, Citi disclosed anticipated fourth-quarter losses ranging from $8 billion to $11 billion in addition to a $6.5 billion loss reported during the third quarter.

Effective November 30, 2007, Citibank divested its 17 branches in Puerto Rico along with $1 billion in deposits to Banco Popular.

In January 2008, Citigroup reported a $10 billion loss for the fourth quarter of 2007 following an $18.1 billion asset write-down.

In March 2008, Citibank introduced Mobile Money Ventures—a joint enterprise with SK Telecom aimed at creating mobile banking applications; this venture was sold to Intuit in June 2011.

In May 2008, the company completed an $87.5 million leaseback arrangement involving its New York City branches.

Citibank’s German operations were sold to Crédit Mutuel in July 2008 and subsequently rebranded as Targobank in February 2010.

After an investigation by the California Attorney General in August 2008 regarding an electronic "account sweeping program," Citibank was mandated to reimburse $14 million taken from customer accounts along with $4 million in interest and penalties.

During the financial crisis of 2008 and related subprime mortgage losses, Citigroup received U.S. Treasury assistance: an initial bailout of $25 billion followed by an additional $20 billion plus guarantees covering $306 billion in troubled assets by November that year. By 2010, all Treasury loans had been repaid with interest resulting in a net gain for the government.

On January 16, 2009, Citigroup announced it would separate Citi Holdings Inc.—which encompassed non-core businesses such as brokerage and asset management—from Citicorp to enable Citibank to concentrate on its primary banking activities.

2010 to present

On October 19, 2011, Citigroup, the parent company of Citibank, consented to a $285 million civil penalty after the U.S. Securities and Exchange Commission charged it with wagering against high-risk mortgage-related securities sold to its customers.

In 2014, Citigroup declared its withdrawal from retail banking operations in 11 countries, predominantly across Europe and Central America. That September, it divested 41 branches in Texas to BB&T and, in 2015, shuttered 17 branches in Massachusetts, also ending its sponsorship of a Boston theater.

The bank was mandated in 2015 to provide $770 million in restitution due to unlawful credit card practices impacting roughly seven million accounts, which included misleading marketing tactics and billing for services never delivered.

By March 2017, sources suggested that Citibank might shut down its 44 branches in India as digital transactions surged, despite maintaining the position as the most profitable foreign bank in the country.

In March 2017, The Guardian revealed that Citibank was among several U.S. banks involved in processing $37 million connected to the Russian Laundromat money laundering scheme between 2010 and 2014.

Citibank implemented a firearms-related policy limiting financial dealings with the U.S. gun industry in March 2018.

In April 2021, Citibank announced plans to exit consumer banking in thirteen markets including Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand, and Vietnam.

Citi disclosed intentions in January 2022 to withdraw from consumer banking operations in Mexico (Citibanamex) as well as from small- and medium-sized enterprise banking.

In September 2022, Citi confirmed it would wind down its retail banking presence in the United Kingdom.

During the fourth quarter of 2023, Citi reported a loss of $1.8 billion and unveiled plans to reduce its workforce by approximately 20,000 positions—around eight percent of its total employees—as announced in January 2024.

At its investor day event in 2024, Citi emphasized its Services division as a significant revenue contributor derived from "financial pipes."

In March 2025, Citi settled a discrimination case by paying £215,000 after a former employee was denied a promotion following maternity leave.

Market	Acquirer/status	Announcement date	Consideration (US$)
Australia	National Australia Bank	2021-08-09	882 million
Indonesia, Malaysia, Thailand and Vietnam	United Overseas Bank	2022-01-13	3.36 billion
South Korea	Gradual withdrawal	2021-10-25	N/A
Philippines	UnionBank of the Philippines	2021-12-23	908 million
Taiwan	DBS Bank	2022-01-28	706.6 million
India	Axis Bank	2022-03-30	1.6 billion
Bahrain	Ahli United Bank	2022-04-06	Not disclosed

Chairmen

Since its establishment in 1812, the institution has been led by a President initially held by Samuel Osgood. The role of chairman was first introduced in 1909 with James Stillman assuming the position.

List of Chairmen

Samuel Osgood (1812–1813)
William Few (1813–1817)
Peter Staff (1817–1825)
Thomas Smith (1825–1827)
Isaac Wright (1827–1832)
Thomas Bloodgood (1832–1844)
Gorham A. Worth (1844–1856)
Moses Taylor (1856–1882)
Percy Pyne (1882–1891)
James Stillman (1891–1918)
Frank A. Vanderlip (1918–1919)
James A. Stillman (1919–1921)
Charles E. Mitchell (1921–1933)
James H. Perkins (1933–1940)
Gordon Sohn Rentschler (1940–1948)
William Gage Brady Jr. (1948–1952)
Howard C. Sheperd (1952–1959)
James Stillman Rockefeller (1959–1967)
George S. Moore (1967–1970)
Walter B. Wriston (1970–1984)
John S. Reed (1984–1998)
John S. Reed and Sandy Weill (1998–2000)
Sandy Weill (2000–2006)
Charles Prince (2006–2007)
Sir Win Bischoff (2007–2009)
Dick Parsons (2009–2012)
Michael O'Neill (2012–2019)
John Dugan (2019– )

Allegations of Money Laundering Involving Raul Salinas

In 1998, Citibank came under scrutiny for its management of funds linked to Raul Salinas de Gortari, sibling of former Mexican president Carlos Salinas. The investigation revealed that the bank facilitated intricate transactions that masked the origins of these funds and failed to properly authenticate the source of Salinas’s wealth, thereby breaching its own "know your customer" standards.

Connections to the Yakuza

Citibank encountered sanctions from Japan’s Financial Services Agency in both 2004 and 2009 for enabling money laundering activities associated with yakuza members; however, U.S. regulators did not impose penalties. During the period from 2004 to 2006, U.S. Immigration and Customs Enforcement confiscated nearly $1 million in assets tied to Susumu Kajiyama, a notable yakuza figure.

Jake Adelstein, author of Tokyo Vice, commented, "In 2004, Citibank Japan lost its private banking license after permitting complex transactions involving yakuza clients. They faced further penalties in 2009 for neglecting to update their databases and allowing continued yakuza-related business."

Financing of the Dakota Access Pipeline

Citibank plays a leading role as a financier for the developers behind the Dakota Access Pipeline in North Dakota, an oil transport infrastructure project. This pipeline has sparked significant debate due to environmental risks and its effects on Siouan sacred sites and water resources. Hugh MacMillan, a senior analyst specializing in water and energy matters, observed that Citibank has been "managing the financial arrangements for this initiative" and spearheaded efforts to engage additional banking institutions.

On December 13, 2016, students from Columbia University demonstrated outside a Citibank branch to protest the bank’s involvement in funding the pipeline. Earlier that year, Columbia replaced Citibank ATMs on campus with those operated by Santander Bank, which does not have connections to the Dakota Access Pipeline project.

Libor Benchmark Settlement

As part of its role in the wider Libor scandal, Citibank consented in June 2018 to pay $100 million in settlement to 42 U.S. states over allegations of manipulating the London Inter-bank Offered Rate. The Libor benchmark serves as a vital reference rate for a wide array of financial and commercial contracts worldwide.

Sponsorships

Citibank is a prominent sponsor of Citi Field, home stadium of the New York Mets, as well as the Washington Open tennis tournament.

In Australia, Citibank was the principal sponsor of the North Sydney Bears during the 1992 NSWRL season, maintained a partnership with the Australian Rugby Union team from 2001 through 2004, and became a key sponsor of the Sydney Swans competing in the Australian Football League starting in 2005.

Within motorsports, First National City backed IndyCar drivers Johnny Rutherford and Al Unser, Sr. during the late 1970s; notably, Unser secured victory at the 1978 Indianapolis 500 under their sponsorship. The bank also supported Formula 1’s Tyrrell team in 1977 and 1978 and currently sponsors driver Fernando Alonso.

Since its inception in 2013, Citibank has served as the primary sponsor for New York City’s bike-sharing system, Citi Bike.