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BUSINESS
September 18, 2010 | Reuters
Citigroup Inc., looking to reduce assets outside its main businesses, is selling Student Loan Corp. to Discover Financial Services in a complicated deal that will reduce the bank's assets but also result in a $500-million charge this quarter. Discover is paying $600 million for Student Loan Corp., which is 80% owned by Citigroup. Just before the transaction closes, Student Loan Corp. will sell $28 billion of federally guaranteed loans to Sallie Mae and $8.7 billion of private student loans to Citigroup.
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BUSINESS
March 26, 2014 | By Jim Puzzanghera
WASHINGTON -- The Federal Reserve said Wednesday it rejected plans by Citigroup Inc. and four other large U.S. banks for dividend payments and stock buybacks after annual stress tests. Those tests raised questions about weaknesses in the risk-planning processes of Citi and three other banks. And the Fed rejected the capital distribution plan of one firm, Zions Bancorporation of Salt Lake City, because of concerns about its financial health during a extreme financial downturn. Overall, 25 of the 30 biggest banks received regulatory approval to pay back money to shareholders after the tests indicated the firms could withstand a severe economic shock even after shedding that capital.
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BUSINESS
July 15, 2013 | By Andrew Tangel
NEW YORK -- Like other major banks, Citigroup sees a slowdown in its mortgage-refinancing business amid a rise in long-term interest rates. “Although the housing market is gaining strength, lower volume of mortgage refinancing will impact our consumer business,” Chief Executive Michael Corbat told analysts during a conference call Monday. “We're already taking steps to make sure the mortgage business is sized correctly,” he said. Federal Reserve Chairman Ben S. Bernanke roiled financial markets last month by fueling speculation that the central bank was poised to scale back monetary stimulus later this year.
BUSINESS
March 26, 2014 | By Jim Puzzanghera and E. Scott Reckard
WASHINGTON - Federal regulators rejected plans by Citigroup Inc. and four other large U.S. banks for dividend payments and stock buybacks after the latest round of stress tests. The results raised concerns about weaknesses in the risk-planning processes of Citi and three of the banks, the Federal Reserve said Wednesday. It was the second time in three years that Citi failed a federal stress test. Citi's chief executive, Michael Corbat, said he was "deeply disappointed" by the Fed's findings, asserting that the nation's third-largest bank by assets was "one of the best-capitalized financial institutions in the world.
BUSINESS
August 8, 2012 | By E. Scott Reckard
Citigroup Inc. is testing a program that would allow distressed homeowners to sign over title to their property and stay on as renters paying less than they did on their mortgages. The effort is similar to a larger ongoing Bank of America pilot offering up to 2,500 customers the option of avoiding foreclosure by trading their mortgages for leases. Citigroup's offer is to be extended to about 500 borrowers who owe more than their homes are worth and who are 120 days or more past due on their home loans.
BUSINESS
November 19, 2010
Wells Fargo has agreed to pay $100 million to Citigroup to settle all claims in a dispute related to its 2008 acquisition of Wachovia Corp. Wachovia nearly collapsed in October 2008, at the height of the financial crisis, under the weight of losses from real estate loans that went bad. The Charlotte, North Carolina-based bank initially agreed to be bought by Citigroup Inc. with help from the U.S. government. However, Wells Fargo & Co. came in with a higher offer days later and managed to grab Wachovia away from Citi.
BUSINESS
February 2, 2011 | By Alex Pham, Los Angeles Times
In an unexpected move, Citigroup Inc. took control of EMI Group but left untouched the management of the British music company that publishes such songwriters as Alicia Keys, Norah Jones and Kanye West. Citigroup's takeover of EMI surprised many in the music industry, which expected the New York bank to wait until EMI's former owner, Terra Firma Capital Partners, defaulted on its $5.4-billion loan before wresting control of the British record company. "Everyone thought Terra Firma had a bigger window," said Bob Lefsetz, a music industry analyst.
BUSINESS
June 29, 2012 | Bloomberg News
Former Citigroup Inc. Vice President Gary Foster was sentenced to 97 months in prison for embezzling almost $23 million from the bank, according to federal prosecutors in Brooklyn, New York. Foster pleaded guilty to bank fraud in September, admitting that he transferred money from various Citigroup accounts to his own at JPMorgan Chase & Co. He concealed his activities by making false accounting entries, according to the government. He used the money to buy real estate and luxury sports cars, including a Ferrari and a Maserati, prosecutors said.
BUSINESS
December 15, 2011 | Reuters
The Securities and Exchange Commission is appealing a judge's rejection of the regulator's $285-million civil securities fraud settlement with Citigroup Inc., according to court papers filed Thursday. The pact was rejected by U.S. District Judge Jed Rakoff last month as "pocket change" for Citigroup. In that ruling, the judge criticized the SEC's policy of settling lawsuits without having defendants admit or deny wrongdoing. The SEC said in a statement that it believes Rakoff erred "by announcing a new and unprecedented standard that inadvertently harms investors by depriving them of substantial, certain and immediate benefits.
BUSINESS
October 16, 2012 | By Andrew Tangel
NEW YORK - Vikram Pandit's sudden exit as Citigroup Inc.'s chief executive has Wall Street  speculating about the "real story" behind the shake-up at the country's third-largest bank. Among the questions: Was Pandit ousted? Did he and Citi's board clash over his pay, his management or the bank's strategy? Or was Pandit's departure all part of the plan? Some viewed the former hedge-fund manager and financial scholar as a placeholder who would stabilize the lumbering behemoth until its fortunes improved.
BUSINESS
March 13, 2014 | By Jim Puzzanghera
WASHINGTON -- Stanley Fischer, the former Bank of Israel president nominated for the Federal Reserve's No. 2 job, defended his work on Wall Street and told senators at his confirmation hearing Thursday that he understood the effect of economic problems on average Americans. Pressed more by Democrats than Republicans on his background, Fischer said his tenure as vice chairman of Citigroup Inc. from 2002 to 2005 was key to his ability to oversee financial institutions as a central banker.
BUSINESS
January 16, 2014 | By Andrew Tangel
NEW YORK -- Citigroup Inc.'s profit jumped in the fourth quarter but fell short of Wall Street hopes for a stronger turnaround for the New York-based financial giant. Citi said it earned $2.7 billion, or 85 cents a share, in the last quarter, up from $1.2 billion, or 38 cents, from the same period the prior year. Wall Street analysts had expected Citi to earn 95 cents a share in the fourth quarter, according to Thomson Reuters. PHOTOS: Federal Reserve chairs through the years Citi's stock slumped in early trading on Thursday.
BUSINESS
December 5, 2013 | By Andrew Khouri
The city of Los Angeles accused banking giants Wells Fargo & Co. and Citigroup Inc. of a “continuous pattern and practice” of mortgage discrimination that led to a wave of foreclosures, reduced property tax revenue and increased costs for city services. In twin lawsuits filed in U.S. District Court, the city alleged that both banks engaged in predatory lending practices and redlining that saddled minorities with loans they couldn't afford and resulted in a disproportionately high number of foreclosures in their neighborhoods compared with white neighborhoods.
BUSINESS
October 15, 2013 | By Andrew Tangel
NEW YORK -- Citigroup Inc.'s third-quarter earnings disappointed Wall Street analysts as the bank reported a sharp slowdown in mortgage and bond-trading revenue. Citi said it earned $3.2 billion, or $1 a share, in net income in the quarter, up from $468 million, or 15 cents a share, during the same period a year ago. But last year's third-quarter results included a $4.7-billion pre-tax loss related to Citi's stake in the Morgan Stanley Smith Barney joint venture. Excluding that item as well as debt-related accounting adjustments and tax benefits in both quarters, the bank made $1.02 per share -- a decline of 4% and below the $1.04 expected by analysts surveyed by Thomson Reuters.
BUSINESS
October 3, 2013 | By Stuart Pfeifer
Citigroup Inc. will pay $30 million to Massachusetts to settle charges that one of its analysts in Taiwan improperly leaked research to four major clients a day before making the information public. Secretary of State William Galvin said the U.S. hedge fund and institutional clients used the advance word of the research to profit from weaker sales of Apple iPhones. PHOTOS: The costliest bank failures Galvin says Citigroup Global Markets Inc., a subsidiary of the banking giant, violated its own policies and procedures as well as federal and state securities laws.
BUSINESS
July 15, 2013 | By Andrew Tangel
NEW YORK -- Citigroup Inc.'s profit jumped 42% in the second quarter as the bank worked to regain its footing following the financial crisis. The New York-based bank reported $4.2 billion, or $1.34 a share, of net income in the quarter, boosted by surges from investment banking and stock trading. That's up from $2.9 billion, or 95 cents a share, in the same period a year ago. Citi's results beat analysts' estimates of $1.17 per share, according to data compiled by Thomson Reuters.
BUSINESS
July 21, 2009 | Roger Vincent and E. Scott Reckard
The seizure of the St. Regis Monarch Beach, where American International Group Inc. sponsored a luxury retreat just days after accepting a federal bailout, is the most dramatic sign yet of the deep troubles in the market for high-end hotels. Citigroup Inc. took over the Dana Point hotel and golf course Monday after months of negotiations over a $70-million loan that was in default.
BUSINESS
January 26, 2008 | From Times Staff and Wire Reports
Citigroup Inc. awarded Chief Executive Vikram Pandit $26.7 million of shares and 3 million stock options, six weeks after he took over the largest U.S. bank and a week after Citigroup reported a record $9.83-billion quarterly loss. Citigroup said Pandit was awarded 1,094,949 shares under a company incentive plan adopted in 1999. He also received options to buy 1 million shares at $24.40 each, 1 million at $30.50 each and 1 million at $36.60 each.
BUSINESS
July 15, 2013 | By Andrew Tangel
NEW YORK -- Like other major banks, Citigroup sees a slowdown in its mortgage-refinancing business amid a rise in long-term interest rates. “Although the housing market is gaining strength, lower volume of mortgage refinancing will impact our consumer business,” Chief Executive Michael Corbat told analysts during a conference call Monday. “We're already taking steps to make sure the mortgage business is sized correctly,” he said. Federal Reserve Chairman Ben S. Bernanke roiled financial markets last month by fueling speculation that the central bank was poised to scale back monetary stimulus later this year.
BUSINESS
June 13, 2013 | By Paresh Dave
This post has been updated with information from an amended criminal complaint filed Thursday afternoon. Hackers allegedly targeted 15 financial institutions, including JPMorgan Chase & Co., Citigroup Inc. and E-Trade, as part of a nearly two-year-long scheme to hack into customer accounts online to steal at least $15 million, U.S. authorities announced this week. "Cybercriminals penetrated some of our most trusted financial institutions as part of a global scheme that stole money and identities from people in the United States," New Jersey U.S. Attorney Paul J. Fishman said in a statement.
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