August 8, 2012 |
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.
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.
February 2, 2011 |
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.
June 29, 2012 |
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.
December 15, 2011 |
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.
October 16, 2012 |
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.