Editing Citigroup (section)

==History==
[[File:Citi.svg|upright=0.9|thumb|right|The Citigroup logo, 1999–present, used concurrently with a slight 2023 redesign]]
[[File:Citigroup.svg|upright=0.9|thumb|right|The Citigroup logo, 2007–2011]]
Citigroup was formed on October 8, 1998, following the merger of Citicorp, the [[bank holding company]] for [[Citibank]], and [[The Travelers Companies|Travelers]] to create the world's largest financial services organization.<ref name=Merge/><ref>{{Cite book | url=https://books.google.com/books?id=lkkGaIr3DQkC&pg=PA39 |title=Business Knowledge for IT in Retail Banking: A Complete Handbook for IT Professionals | date=2007 |publisher=Essvale Corporation Limited |isbn=978-0-9554124-2-4 | language=en}}</ref>

===<span class="anchor" id="Citicorp"></span>Citicorp (1812–1985)===
[[Citibank]] (formerly City Bank of New York) was chartered by the [[State of New York]] on June 16, 1812, with $2&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=2000000|start_year=1812}}}} in {{Inflation/year|US-GDP}}) of capital.<ref name=Dramatic>{{Cite news | url=https://www.businessinsider.com/presenting-a-history-of-citi-2012-4 | title=The Dramatic Highlights From Citi's 200-Year History | last=Wile | first=Rob | work=[[Business Insider]] | date=April 4, 2012}}</ref><ref>{{Cite web |url=https://www.cnbc.com/2009/06/16/today-in-fast-money-history-june-16th.html |title=Today In Fast Money History – June 16th | last=Shin | first=Sally | work=[[CNBC]] | date=June 16, 2009}}</ref> Serving a group of New York [[merchant]]s, the bank opened for business on September 14 of that year,{{Citation needed|date=April 2020}} and [[Samuel Osgood]] was elected as the first President of the company.<ref name=Dramatic/> After the [[Panic of 1837]], [[Moses Taylor]] acquired control of the company.<ref name=encyclopedia/> The company's name was changed to The National City Bank of New York in 1865 after it converted its state charter into a federal charter and joined the new U.S. national banking system.<ref name=Dramatic/> After Taylor died in 1882, [[Percy Rivington Pyne I]] became president of the bank.<ref name=encyclopedia/> He died nine years later and was replaced by [[James Stillman]].<ref name=encyclopedia/> The bank became the largest bank in New York City after the [[Panic of 1893]] and the largest  bank in the U.S. by 1895.<ref name=encyclopedia/> It became the first contributor to the [[Federal Reserve Bank of New York]] in 1913, and the following year it inaugurated the first overseas branch of a U.S. bank in [[Buenos Aires]],<ref>{{Cite book | last1=Jones | first1=Geoffrey |author-link=Geoffrey Jones (academic) | url=https://books.google.com/books?id=bmATDAAAQBAJ&q=1914+citicorp+first+overseas+branch+of+a+U.S.+bank+in+Buenos+Aires&pg=PA114 | title=Multinationals and Global Capitalism: From the Nineteenth to the Twenty First Century |date=2005 |publisher=OUP Oxford |isbn=978-0-19-927209-9 |language=en}}</ref> although the bank had been active in plantation economies, such as the Cuban sugar industry, since the mid-19th century.{{Citation needed|date=April 2020}} The purchase of U.S. overseas bank International Banking Corporation in 1918 helped it become the first American bank to surpass $1&nbsp;billion in assets.<ref name=encyclopedia>{{Cite encyclopedia | url=https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/citigroup-inc | title=Citigroup Inc. | encyclopedia=[[Encyclopedia.com]]}}</ref> During the [[United States occupation of Haiti]] and the bank's income from Haiti's loan debt related to the [[Haiti indemnity controversy]], the bank earned some of its largest gains in the 1920s due to debt payments from Haiti, becoming the largest commercial bank in the world in 1929.<ref name=encyclopedia/><ref>{{Cite news |url=https://www.nytimes.com/2022/05/20/world/haiti-wall-street-us-banks.html | last1=Gebrekidan |first1=Selam |last2=Apuzzo |first2=Matt |last3=Porter | first3=Catherine |last4=Méheut |first4=Constant  | title=Invade Haiti, Wall Street Urged. The U.S. Obliged. | work=[[The New York Times]] |date=May 20, 2022 | url-access=limited |issn=0362-4331}}</ref> As it grew, the bank became an innovator in financial services, becoming the first major U.S. bank to offer [[compound interest]] on [[saving]]s (1921); [[Unsecured loan|unsecured personal loans]] (1928); customer [[Cheque|checking accounts]] (1936) and the negotiable [[certificate of deposit]] (1961).<ref name=encyclopedia/><ref name=wsj20121017>{{cite news | url=https://www.wsj.com/articles/SB10000872396390443854204578060280201488530 | title=Pandit Ousted As CEO Of Citi  | last1=Enrich | first1=David | last2=Kapner | first2=Suzanne | last3=Fitzpatrick | first3=Dan
| work=[[The Wall Street Journal]] |date=October 17, 2012 | url-access=subscription}}</ref><ref name=veteran>{{cite news   | url=https://www.cnbc.com/2012/10/16/citigroup-picks-veteran-to-replace-pandit-as-ceo.html | title=Citigroup picks veteran to replace Pandit as CEO   | first=Matthew | last=Craft | agency=[[Associated Press]] | work=[[CNBC]] | date=October 16, 2012}}</ref>

The bank merged with First National Bank of New York in 1955, becoming the First National City Bank of New York in 1955. The "New York" was dropped in 1962 on the 150th anniversary of the company's foundation.<ref name=encyclopedia/> The company organically entered the leasing and credit card sectors, and its introduction of U.S. dollar-denominated certificates of deposit in [[London]] marked the first new negotiable instrument in the market since 1888. The bank introduced its First National City Charge Service credit card—popularly known as the "[[Everything card]]" and later to become [[MasterCard]]—in 1967.<ref name=encyclopedia/> Also in 1967, First National City Bank was reorganized as a one-bank holding company, First National City Corporation, or "Citicorp" for short. The bank had been nicknamed "Citibank" since the 1860s when it began using this as an eight-letter wire code address.<ref name="RefBiz">[http://www.fundinguniverse.com/company-histories/citigroup-inc-history/ Citigroup] at Reference for Business</ref>

In 1974, under the leadership of CEO [[Walter B. Wriston]], First National City Corporation changed its formal name to "Citicorp", with First National City Bank being formally renamed Citibank in 1976.<ref name="RefBiz"/> Shortly afterwards, the bank launched the Citicard, which pioneered the use of 24-hour [[Automated teller machine|ATMs]].<ref name=encyclopedia/> [[John S. Reed]] was elected CEO in 1984, and Citi became a founding member of the [[CHAPS]] clearing house in London. Under his leadership, the next 14 years would see Citibank become the largest bank in the United States and the largest issuer of credit cards and charge cards in the world, and expand its global reach to over 90 countries.<ref name=encyclopedia/><ref name="wsj20121017"/><ref name=veteran/><ref name=CitiBiggest>{{cite news |url=https://www.chicagotribune.com/news/ct-xpm-1992-04-17-9202040445-story.html| title=Citibank Bows to Trend, Cuts Credit Card Rate | first=Mike | last=Dorning |newspaper=[[Chicago Tribune]] |date=April 17, 1992 | url-access=limited}}</ref><ref name=NYbagelfalls/><ref>{{cite news | url=https://www.nytimes.com/1986/11/22/business/citicorp-cuts-credit-card-rate.html | title=Citicorp Cuts Credit Card Rate | first=Robert A. | last=Bennett | newspaper=[[The New York Times]] |date=November 22, 1986 | url-access=limited}}</ref>

===Travelers Group (1986–2007)===
[[File:Travelers logo.png|thumb|The corporate logo of Travelers Inc. (1993–1998) prior to the merger with Citicorp]]
Travelers Group, at the time of the merger, was a diverse group of financial concerns that had been brought together under CEO [[Sandy Weill]]. Its roots came from Commercial Credit, a subsidiary of [[Control Data Corporation]] that was taken private by Weill in November 1986 after taking charge of the company earlier that year.<ref name=Merge/> Two years later, Weill mastered the buyout of [[Primerica Financial Services]]—a conglomerate that had already bought [[life insurance]] company A L Williams as well as [[brokerage firm]] [[Smith Barney]]. The new company took the Primerica name, and employed a "[[cross-selling]]" strategy such that each of the entities within the parent company aimed to sell each other's services. Its non-financial businesses were [[Corporate spin-off|spun off]].

In September 1992, [[Travelers Insurance]], which had suffered from poor real estate investments<ref name=Merge/> and sustained significant losses in the aftermath of [[Hurricane Andrew]],<ref>{{cite news | url=http://content.time.com/time/magazine/article/0,9171,158008,00.html | title=Survival Insurance | magazine=[[Time (magazine)|Time]] | date=June 24, 2001}}</ref> formed a strategic alliance with Primerica that would lead to its amalgamation into a single company in December 1993. With the acquisition, the group became Travelers Inc. Property & casualty and life & annuities [[underwriting]] capabilities were added to the business. Meanwhile, the distinctive Travelers red umbrella logo, which was also acquired in the deal, was applied to all the businesses within the newly named organization. During this period, Travelers acquired [[Shearson Lehman]]—a retail brokerage and asset management firm that was headed by Weill until 1985<ref name=Merge/>—and merged it with Smith Barney.

====Ownership of Salomon Brothers (1997–2003)====
In November 1997, Travelers Group (which had been renamed again in April 1995 when they merged with Aetna Property and Casualty, Inc.), acquired [[Salomon Brothers]], a major [[Bond market|bond dealer]] and [[bulge bracket]] [[investment bank]], in a $9&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=9000000000|start_year=1997}}}} in {{Inflation/year|US-GDP}}) transaction.<ref>{{cite web | url=http://edgar.secdatabase.com/2439/104746997006335/filing-main.htm | title=Travelers Group, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=November 28, 1997}}</ref> This deal complemented Travelers/[[Smith Barney]] well as Salomon was focused on fixed-income and institutional clients, whereas Smith Barney was strong in equities and retail. Salomon Brothers absorbed Smith Barney into the new securities unit termed Salomon Smith Barney; a year later, the division incorporated Citicorp's former securities operations as well. The Salomon Smith Barney name was abandoned in October 2003 after a series of financial scandals that tarnished the bank's reputation.<ref>{{cite news | url=http://www.businessinsider.com/the-slow-death-of-smith-barney-2012-6 | title=Morgan Stanley Is Killing 'Smith Barney' — Here's The Story Of How It Died | first=Ben | last=Duronio | work=[[Business Insider]] | date=June 12, 2012}}</ref>

===Merger of Citicorp and Travelers (1998–2001)===
On April 6, 1998, Citicorp and Travelers announced a merger.<ref name=Merge/> The deal would enable Travelers and Citicorp to access each other's customer base for the marketing of financial products.

In the transaction, Travelers Group acquired all Citicorp shares; existing shareholders of each company owned about half of the new firm.<ref name=Merge/> While the new company maintained Citicorp's "Citi" brand in its name, it adopted Travelers' distinctive "red umbrella" as the new corporate logo, which was used until 2007.<ref>{{cite news | url=https://money.cnn.com/2007/02/13/news/companies/citigroup/ | title=Travelers buys back its red umbrella | first=Keisha | last=Lamothe | work=[[CNN]] | date=February 13, 2007}}</ref>

The chairmen of both parent companies, [[John S. Reed]] and [[Sandy Weill]] respectively, were announced as co-chairmen and co-CEOs of the new company, Citigroup, Inc., although the vast difference in management styles between the two immediately presented question marks over the wisdom of such a setup.

The remaining provisions of the [[Glass–Steagall Act]]—enacted following the Great Depression—forbade banks to merge with insurance underwriters, and meant Citigroup had between two and five years to divest any prohibited assets. Weill stated at the time of the merger that they believed "that over that time the legislation will change&nbsp;... we have had enough discussions to believe this will not be a problem".<ref name=Merge/> Indeed, the passing of the [[Gramm-Leach-Bliley Act]] in November 1999 vindicated Reed and Weill's views, opening the door to financial services conglomerates offering a mix of commercial banking, investment banking, insurance underwriting, and brokerage.<ref>{{cite web | url=http://www.investopedia.com/articles/03/071603.asp | title=What Was The Glass–Steagall Act? | first=Reem | last=Heakal | publisher=[[Investopedia]] | date=July 16, 2003}}</ref>

[[Joe J. Plumeri]] worked on the post-merger integration of the two companies and was appointed CEO of Citibank North America by Weill and Reed. He oversaw its network of 450 [[branch (banking)|branches]].<ref name=plumeriwsj>{{cite news | url=https://www.wsj.com/articles/SB944183809998441272 | title=Joseph Plumeri to Leave Citigroup For Top Job at Nonfinancial Firm | work=[[The Wall Street Journal]] | date=December 3, 1999 | url-access=subscription}}</ref> J. Paul Newsome, an analyst with [[CIBC Oppenheimer]], said: "He's not the spit-and-polish executive many people expected. He's rough on the edges. But Citibank knows the bank as an institution is in trouble—it can't get away anymore with passive selling—and Plumeri has all the passion to throw a glass of cold water on the bank."<ref>{{cite news | last=Nash | first=Jeff | url=http://www.investmentnews.com/article/19990419/SUB/904190722 | title=The Chief Preacher: Joe Plumeri – Citibank Finds Sales Religion | work=Investment News | date=April 19, 1999}}</ref> Plumeri boosted the unit's earnings from $108&nbsp;million to $415&nbsp;million in one year, an increase of nearly 300%.<ref>{{cite news | url=https://www.bizjournals.com/philadelphia/stories/2003/11/17/daily17.html | title=Commerce adds Plumeri to Board of Directors | work=[[American City Business Journals]] | date=November 19, 2003 | url-access=subscription}}</ref><ref>{{cite press release | url=http://www.willis.com/Documents/Media_Room/Press_Releases/2004/4-1-04%20Risk%20Transfer.pdf | title=Breaking with Tradition: Willis Re-energized | work=Risk Transfer Magazine | date=April 1, 2004}}</ref> He unexpectedly retired from Citibank in January 2000.<ref name=plumeriwsj/>

{{anchor|Associates First Capital Corporation|Associates Corporation of North America|Associates National Bank|The Associates}}
In 2000, Citigroup acquired Associates First Capital Corporation for $31.1&nbsp;billion in stock,<ref>{{cite news | url=https://www.nytimes.com/2000/09/07/business/citigroup-to-buy-associates-first-for-31-billion.html | title=Citigroup to Buy Associates First for $31 Billion | first=Patrick | last=Mcgeehan | work=[[The New York Times]] | date=September 7, 2000 | url-access=limited}}</ref> which, until 1989, had been owned by [[Gulf+Western]] (now part of [[National Amusements]]),<ref>{{cite web | url=http://edgar.secdatabase.com/1533/95017200001546/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=September 6, 2000}}</ref> and later by [[Ford Motor Credit Company]].<ref name="ct-1989aug13">{{cite news | url=https://www.chicagotribune.com/news/ct-xpm-1989-08-13-8901040282-story.html | title=Associates Widens Ford's Road | first=Joe | last=Simnacher | work=[[Chicago Tribune]] | date=August 13, 1989 | url-access=limited}}</ref> The Associates was widely criticized for predatory lending practices and Citi eventually settled with the Federal Trade Commission by agreeing to pay $240&nbsp;million to customers who had been victims of a variety of predatory practices, including "flipping" mortgages, "packing" mortgages with optional credit insurance, and deceptive marketing practices.<ref name="Citigroup-Oct-2002-8-K">{{cite web |url=http://edgar.secdatabase.com/1820/91205702038795/filing-main.htm |title=Citigroup, Form 8-K, Current Report, Filing Date Oct 16, 2002 |publisher=secdatabase.com |access-date =March 26, 2013}}</ref><ref>{{cite press release | url=https://www.ftc.gov/news-events/press-releases/2002/09/citigroup-settles-ftc-charges-against-associates-record-setting | title=Citigroup Settles FTC Charges Against the Associates Record-Setting $215&nbsp;million for Subprime Lending Victims | publisher=[[Federal Trade Commission]] | date=September 19, 2002}}</ref>

In 2001, Citigroup made additional acquisitions: [[European American Bank]], in July, for $1.9&nbsp;billion,<ref>{{cite news | url=https://www.nytimes.com/2001/02/13/business/eab-purchase-lets-citibank-expand-long-island-presence.html | title=E.A.B. Purchase Lets Citibank Expand Long Island Presence | first=Kenneth N. | last=Gilpin | work=[[The New York Times]] | date=February 13, 2001 | url-access=limited}}</ref><ref>{{cite news | url=https://money.cnn.com/2001/02/12/deals/citibank/index.htm | title=Citibank to buy EAB | work=[[CNN]] | date=February 12, 2001}}</ref><ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-2001-feb-13-fi-24719-story.html | title=Citigroup to Buy European American Bank in Bid to Increase N.Y. Market Share | work=[[Los Angeles Times]] | date=February 13, 2001 | url-access=limited}}</ref><ref>{{cite web | url=http://edgar.secdatabase.com/1031/91205701528176/filing-main.htm | title=Citigroup, Form 10-Q, Quarterly Report | publisher=[[U.S. Securities and Exchange Commission]] | date=August 13, 2001}}</ref> and [[Banamex]] in August, for $12.5&nbsp;billion.<ref>{{cite web | url=http://edgar.secdatabase.com/1685/95010301500965/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=May 17, 2001}}</ref><ref>{{cite news | url=https://www.nytimes.com/2001/05/18/business/citigroup-to-buy-mexican-bank-in-a-deal-valued-at-12.5-billion.html | title=Citigroup to Buy Mexican Bank In a Deal Valued at $12.5 Billion | first1=Riva D. | last1=Atlas | first2=Tim | last2=Weiner | work=[[The New York Times]] | date=May 18, 2001 | url-access=limited}}</ref><ref>{{cite news | url=https://www.washingtonpost.com/archive/business/2001/05/18/citigroup-to-buy-mexicos-banamex/7f5a6951-7dae-42fd-91dd-ad14a0767b95/ | title=Citigroup to Buy Mexico's Banamex | first=Kathleen | last=Day | newspaper=[[The Washington Post]] | date=May 18, 2001}}</ref>

===Spin-off of Travelers (2002)===
[[File:The Travelers Companies.svg|thumb|The current logo for Travelers Companies]]
The company spun off its Travelers Property and Casualty insurance underwriting business in 2002.<ref>{{cite web | url=http://edgar.secdatabase.com/2826/91205702027805/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=July 18, 2002}}</ref> The spin-off was prompted by the insurance unit's drag on Citigroup stock price because Travelers earnings were more seasonal and vulnerable to large disasters and events such as the [[September 11 attacks]]. It was also difficult to sell insurance directly to its customers since most customers were accustomed to purchasing insurance through a broker.<ref>{{cite news | url=https://money.cnn.com/2001/12/19/ipo/citigroup/index.htm | title=Citigroup to spin Travelers | work=[[CNN]] | date=December 19, 2001}}</ref><ref>{{cite news | url=https://www.latimes.com/archives/la-xpm-2001-dec-20-fi-16570-story.html | title=Citigroup to Spin Off Travelers Insurance | work=[[Los Angeles Times]] | date=December 20, 2001 | url-access=limited}}</ref>

Travelers merged with The St. Paul Companies Inc. in 2004 forming The St. Paul Travelers Companies.<ref>{{cite press release | url=https://investor.travelers.com/newsroom/press-releases/news-details/2004/St-Paul-Travelers-Merger-Complete/default.aspx | title=St. Paul Travelers Merger Complete | publisher=[[The Travelers Companies]] | date=April 1, 2004}}</ref><ref>{{cite web | url=http://pdf.secdatabase.com/2809/0001104659-04-011724.pdf | title=Travelers Group, Form 8-K, Current Report, Filing Date  | publisher=[[U.S. Securities and Exchange Commission]] | date=April 29, 2004}}</ref> Citigroup retained the life insurance and annuities underwriting businesses until it sold them to [[MetLife]] in 2005.<ref>{{cite web | url=http://edgar.secdatabase.com/1668/95012305000892/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=January 31, 2005}}</ref>

In spite of divesting Travelers Insurance, Citigroup retained Travelers' signature red umbrella logo as its own until February 2007, when Citigroup agreed to sell the logo back to St. Paul Travelers,<ref>{{cite web | url=http://pdf.secdatabase.com/2935/0001047469-08-011506.pdf | title=Citigroup, Form 10-Q, Quarterly Report | publisher=[[U.S. Securities and Exchange Commission]] | date=October 31, 2008}}</ref> which renamed itself [[Travelers Companies]]. Citigroup also decided to adopt the corporate brand "Citi" for itself and virtually all its subsidiaries, except Primerica and Banamex.

===Subprime mortgage crisis (2007)===
Heavy exposure to troubled mortgages in the form of [[collateralized debt obligation]] (CDOs), compounded by poor risk management, led Citigroup into trouble as the [[subprime mortgage crisis]] worsened in 2007. The company had used elaborate mathematical risk models which looked at mortgages in particular geographical areas, but never included the possibility of a national housing downturn or the prospect that millions of mortgage holders would default on their mortgages. Trading head [[Thomas Maheras]] was close friends with senior risk officer David Bushnell, which undermined risk oversight.<ref>{{cite news | url=https://www.nytimes.com/2008/01/27/business/yourmoney/27kim.html | title=What's $34 billion on Wall Street? | first=Landon Jr. | last=Thomas | work=[[The New York Times]] | date=January 27, 2008 | url-access=limited}}</ref><ref>{{cite news | url=https://www.nytimes.com/2008/11/23/business/23citi.html | title=Citigroup Saw No Red Flags Even as It Made Bolder Bets | first1=Eric | last1=Dash | first2=Julie | last2=Creswell | work=[[The New York Times]] |date=November 23, 2008 | url-access=limited}}</ref> As Treasury Secretary, [[Robert Rubin]] was said to be influential in lifting the [[Glass–Steagall Act]] that allowed Travelers and Citicorp to merge in 1998. Then on the board of directors of Citigroup, Rubin and Charles Prince were said to be influential in pushing the company towards [[Mortgage-backed security|MBS]] and CDOs in the subprime mortgage market.

Starting in June 2006, Senior Vice President [[Richard M. Bowen III]], the chief underwriter of Citigroup's Consumer Lending Group, began warning the board of directors about the extreme risks being taken on by the mortgage operation that could potentially result in massive losses. The group bought and sold $90&nbsp;billion of residential mortgages annually. Bowen's responsibility was essential to serve as the quality control supervisor ensuring the unit's creditworthiness. When Bowen first became a [[whistleblower]] in 2006, 60% of the mortgages were defective. The number of bad mortgages began increasing throughout 2007 and eventually exceeded 80% of the volume. Many of the mortgages were not only defective but were a result of [[mortgage fraud]]. Bowen attempted to rouse the board via weekly reports and other communications. On November 3, 2007, Bowen emailed Citigroup chairman [[Robert Rubin]] and the bank's [[chief financial officer]], head auditor, and the chief risk management officer to again expose the risk and potential losses, claiming that the group's internal controls had broken down and requesting an outside investigation of his business unit. The subsequent investigation revealed that the Consumer Lending Group had suffered a breakdown of internal controls since 2005. Despite the findings of the investigation, Bowen's charges were ignored, even though withholding such information from shareholders violated the [[Sarbanes–Oxley Act]] (SOX), which he had pointed out. Citigroup CEO [[Charles Prince]] signed a certification that the bank was in compliance with SOX despite Bowen revealing this wasn't so. Citigroup eventually stripped Bowen of most of his responsibilities and informed him that his physical presence was no longer required at the bank. The Financial Crisis Inquiry Commission asked him to testify about Citigroup's role in the mortgage crisis, and he did so, appearing as one of the first witnesses before the Commission in April 2010.<ref>{{cite news | url=https://www.cbsnews.com/news/prosecuting-wall-street/ | title=60 Minutes: Prosecuting Wall Street | work=[[CBS News]] | date=December 5, 2011}}</ref>

As the crisis began to unfold, Citigroup announced on April 11, 2007, that it would eliminate 17,000 jobs, or about 5% of its workforce, in a broad restructuring designed to cut costs and bolster its long underperforming stock.<ref>{{cite web | url=http://edgar.secdatabase.com/1759/110465907027668/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=April 11, 2007}}</ref> Even after [[Security (finance)|securities]] and [[brokerage]] firm [[Bear Stearns]] ran into serious trouble in summer 2007, Citigroup decided the possibility of trouble with its CDOs was so tiny (less than 1/100 of 1%) that they excluded them from their risk analysis. With the crisis worsening, Citigroup announced on January 7, 2008, that it was considering cutting another 5 percent to 10 percent of its 327,000 member-workforce.<ref>{{cite news | url=https://www.reuters.com/article/businessNews/idUSN0738522020080107 | title=Citi mulls cutting work force by 5 to 10 percent: report |last=Plumb | first=Christian | work=[[Reuters]] |date=January 1, 2008}}</ref>

=== Failed takeover of Nikko Asset Management ===
In 2007, Citigroup acquired 61% of [[Nikko Asset Management]] for $7.7 billion to take majority control in what was then the largest foreign buyout ever of a Japanese company.<ref>{{Cite news |last= |date=2007-04-27 |title=Citigroup Acquires Nikko |url=https://www.nytimes.com/2007/04/27/business/27nikko.html |access-date=2024-05-06 |work=The New York Times |language=en-US |issn=0362-4331 |agency=Reuters}}</ref> Citigroup attempted to buy out the remaining shares of Nikko later that year at a cost of $4.6 billion to take full control of the company.<ref>{{Cite news |last=Dolan |first=David |date=2007-10-03 |title=Citigroup to buy rest of Nikko in $4.6 bln deal |url=https://www.reuters.com/article/idUST146777/ |access-date=2024-05-06 |work=Reuters}}</ref> Two years later, Citigroup sold its stake to Sumitomo Trust and Banking Co, a subsidiary of [[Sumitomo Mitsui Trust Holdings]], for $795 million as it retreated from Japan.<ref>{{Cite web |last=Bernard |first=Stephen |date=2009-07-30 |title=Citigroup sells stake in Japanese asset manager |url=https://www.sandiegouniontribune.com/sdut-us-citigroup-nikko-asset-management-073009-2009jul30-story.html |access-date=2024-05-06 |website=San Diego Union-Tribune |language=en-US |agency=AP}}</ref><ref>{{Cite news |last=Hodo |first=Chikafumi |date=2009-07-30 |title=Citi sells Japan asset manager in $1.2 billion deal |url=https://www.reuters.com/article/idUSTRE56S11N/ |access-date=2024-05-06 |work=Reuters}}</ref>

===Collapse and US government intervention (2008)===
By July 2008 Citigroup was described as struggling,<ref name=IW2008>{{cite magazine |magazine=[[InformationWeek]]
|title=Tomorrow's CIO: Citi Piles It On |author=John Soat |date=July 14, 2008 |page=24}}</ref> and by November they were insolvent, despite their receipt of $25&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=25000000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}) in taxpayer-funded federal [[Troubled Asset Relief Program]] funds. On November 17, 2008, Citigroup announced plans for about 52,000 new job cuts, on top of 23,000 cuts already made during 2008 in a huge job cull resulting from four-quarters of consecutive losses and reports that it was unlikely to be in profit again before 2010. The same day on [[Wall Street]] markets responded, with shares falling and dropping the company's market capitalization to $6&nbsp;billion, down from $300&nbsp;billion two years prior.<ref name=stockcollapse/> Eventually staff cuts totaled over 100,000 employees.<ref name=jobcuts2>{{cite news |url=http://news.bbc.co.uk/1/hi/business/7733575.stm |title=Citigroup job cull to hit 75,000 |publisher=BBC News
|access-date=November 17, 2008 |date=November 17, 2008}}</ref> Its stock market value dropped to $20.5&nbsp;billion, down from $244&nbsp;billion two years earlier.<ref name=stockcollapse>
 {{cite news |url=https://www.nytimes.com/2008/11/23/business/23citi.html
 | title=Citigroup Saw No Red Flags Even as It Made Bolder Bets |last1=Dash | first1=Eric |last2=Creswell |first2=Julie
  |work=The New York Times | date=November 22, 2008 | url-access=limited}}</ref> Shares of Citigroup common stock traded well below $1.00 on the [[New York Stock Exchange]].

As a result, late in the evening on November 23, 2008, Citigroup and Federal regulators approved a plan to stabilize the company and forestall a further deterioration in the company's value. On November 24, 2008, the U.S. government announced a massive bailout for Citigroup designed to rescue the company from bankruptcy while giving the government a major say in its operations. A joint statement by the [[US Treasury Department]], the [[Federal Reserve]] and the [[Federal Deposit Insurance Corporation]] (FDIC) announced: "With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy."<ref>{{cite news | url=https://www.wsj.com/articles/SB122747680752551447 | title=U.S. Agrees to Rescue Struggling Citigroup | first1=David | last1=Enrich | first2=Carrick | last2=Mollenkamp | first3=Matthias |last3=Rieker | first4=Damian | last4=Paletta | first5=Jon | last5=Hilsenrath | work=[[The Wall Street Journal]] | date=November 24, 2008 | url-access=subscription}}</ref><ref>{{cite press release | url=http://www.federalreserve.gov/newsevents/press/bcreg/20081123a.htm | title=FRB: Press Release-Joint statement by Treasury, Federal Reserve, and the FDIC on Citigroup | publisher=[[Federal Reserve Board of Governors]] | date=November 23, 2008}}</ref><ref>{{cite news | url=https://money.cnn.com/2008/11/23/news/companies/citigroup/index.htm | title=Citi dodges bullet | work=[[CNNMoney]] | date=November 23, 2008}}</ref><ref>{{cite news | url=https://www.reuters.com/article/us-citigroup/citigroup-gets-massive-government-bailout-idUSTRE4AJ45G20081124 | title=Citigroup gets massive government bailout | first1=Dan | last1=Wilchins | first2=Jonathan | last2=Stempel | work=[[Reuters]] | date=November 23, 2008}}</ref><ref>{{cite web | url=http://pdf.secdatabase.com/367/0000950123-08-016585.pdf | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=November 26, 2008}}</ref>

====TARP funding====
Citi received the largest amount of [[Troubled Asset Relief Program|TARP]] funding, "a larger bailout than any other U.S. bank."<ref>{{cite news  | url=https://www.bloomberg.com/news/articles/2021-02-26/citi-s-corbat-has-parting-words-banking-is-quickly-changing | title=Citi's Corbat Has Parting Words: 'Banking Is Quickly Changing' | first=Jennifer | last=Surane | work=[[Bloomberg News]] | date=February 26, 2021 | url-access=subscription}}</ref> The bailout called for the government to back about $306&nbsp;billion in loans and securities and directly invest about $20&nbsp;billion in the company. The Treasury provided $20&nbsp;billion in [[Troubled Asset Relief Program]] (TARP) funds in addition to $25&nbsp;billion given in October. The Treasury Department, the Federal Reserve and the FDIC agreed to cover 90% of the losses on Citigroup's $335&nbsp;billion portfolio after Citigroup absorbed the first $29&nbsp;billion in losses. The Treasury would assume the first $5&nbsp;billion in losses; the FDIC would absorb the next $10&nbsp;billion; then the Federal Reserve would assume the rest of the risk. The assets remained on Citigroup's balance sheet; the technical term for this arrangement is [[Ring fence|ring fencing]].

In return, the bank gave the U.S. Treasury $27&nbsp;billion of preferred shares and warrants to acquire [[common stock]]. The government obtained wide powers over banking operations. Citigroup agreed to try to modify mortgages, using standards set up by the FDIC after the collapse of [[IndyMac Bank]], with the goal of keeping as many homeowners as possible in their houses. Executive salaries would be capped.<ref>{{cite news | url=https://www.nytimes.com/2008/11/24/business/24citibank.html |title=U.S. Approves Plan to Help Citigroup Weather Losses | last=Dash | first=Eric | work=[[The New York Times]] | date=November 23, 2008}}</ref> As a condition of the federal assistance, Citigroup's dividend payment was reduced to $0.01 per share.

In a ''[[New York Times]]'' op-ed, Michael Lewis and David Einhorn described the November 2008 $306&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=306000000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}) guarantee as "an undisguised gift" without any real crisis motivating it.<ref>{{cite news | url=https://www.nytimes.com/2009/01/04/opinion/04lewiseinhornb.html | title=How to Repair a Broken Financial World | author-link1=Michael Lewis | author-link2=David Einhorn (hedge fund manager) | first1=Michael | last1=Lewis | first2=David | last2=Einhorn | work=[[The New York Times]] | date=January 4, 2009 | url-access=limited}}</ref>

According to ''[[The Wall Street Journal]]'', the government aid provided to Citi in 2008/2009 was provided to prevent a worldwide chaos and panic by the potential collapse of its Global Transactions Services (now TTS) division. According to the article, former CEO [[Vikram Pandit|Pandit]] said if Citigroup was allowed to unravel into bankruptcy, "100 governments around the world would be trying to figure out how to pay their employees".<ref>{{cite news | last=Enrich | first=David | url=https://www.wsj.com/articles/SB126317001431624045 | title=Citi Unit Grows – With Feds' Help | work=[[The Wall Street Journal]] | date=January 12, 2010 | url-access=subscription}}</ref><ref>{{cite news | last=Ovide | first=Shira | url=https://www.wsj.com/articles/BL-DLB-29290 | title=The Overlooked Gem Inside Citigroup | publisher=[[The Wall Street Journal]] | date=November 29, 2010 | url-access=subscription}}</ref>

According to New York Attorney General [[Andrew Cuomo]], Citigroup paid hundreds of millions of dollars in bonuses to more than 1,038 of its employees after it had received its $45&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=45000000000|start_year=2008}}}} in {{Inflation/year|US-GDP}}) TARP funds in late 2008. This included 738 employees each receiving $1&nbsp;million in bonuses, 176 employees each receiving $2&nbsp;million bonuses, 124 each receiving $3&nbsp;million in bonuses, and 143 each receiving bonuses of $4&nbsp;million to more than $10&nbsp;million.<ref>{{cite news | url=https://www.wsj.com/articles/BL-DLB-12285 | title=Wall Street Compensation–'No Clear Rhyme or Reason | first=Stephen | last=Grocer | work=[[The Wall Street Journal]] | date=July 30, 2009 | url-access=subscription}}</ref> As a result of the criticism and the U.S. Government's majority holding of Citigroup's [[common stock]], compensation and bonuses were restricted from February 2009 until December 2010.<ref>{{cite web | url=https://www.sigtarp.gov/Audit%20Reports/SIGTARP_ExecComp_Audit.pdf | title=The Special Master's Determinations for Executive Compensation of Companies Receiving Exceptional Assistance Under TARP | publisher=[[SIGTARP]] | date=January 23, 2012 | access-date=December 19, 2016 | archive-date=November 8, 2020 | archive-url=https://web.archive.org/web/20201108133730/https://www.sigtarp.gov/Audit%20Reports/SIGTARP_ExecComp_Audit.pdf | url-status=dead }}</ref>

In 2009, [[Jane Fraser (banking)|Jane Fraser]], the CEO of Citi Private Bank, stopped paying its bankers with a commission for selling investment products, in a move to bolster Citi Private Bank's reputation as an independent wealth management adviser, as opposed to a product pusher.<ref>{{cite web | url=http://www.marketwatch.com/story/citi-private-bank-targets-doubled-growth-2010-11-18 | title=Citi private bank targets doubled growth | first=Katharina | last=Bart | work=[[Marketwatch]] | date=November 18, 2010}}</ref>

===Creation of Citi Holdings (2009)===
On January 16, 2009, Citigroup announced its intention to reorganize itself into two operating units: Citicorp for its retail and institutional client business, and Citi Holdings for its brokerage and asset management.<ref name=prsplit>{{cite press release | url=http://www.citigroup.com/citi/news/2009/090116b.htm | title=Citi to Reorganize into Two Operating Units to Maximize Value of Core Franchise | publisher=Citigroup | date=January 16, 2009}}</ref> Citigroup will continue to operate as a single company for the time being, but Citi Holdings managers will be tasked to "take advantage of value-enhancing disposition and combination opportunities as they emerge",<ref name=prsplit/> and eventual spin-offs or mergers involving either operating unit were not ruled out.<ref>{{cite news | url=https://www.nytimes.com/2009/01/17/business/17citi.html | title=Citigroup Reports Big Loss and a Breakup Plan | first=Eric | last=Dash | work=The New York Times | date=January 17, 2009}}</ref> Citi Holdings consists of Citi businesses that Citi wants to sell and are not considered part of Citi's core businesses. The majority of its assets are U.S. mortgages. It was created in the wake of the financial crisis as part of Citi's restructuring plan. It consists of several business entities including remaining interests in local consumer lending such as OneMain Financial, divestitures such as Smith Barney, and a special asset pool. Citi Holdings represents $156&nbsp;billion of GAAP assets, or ~8% of Citigroup; 59% represents North American mortgages, 18% operating businesses, 13% special asset pool, and 10% categorized as other. Operating businesses include OneMain Financial ($10B), PrimeRe ($7B), MSSB JV ($8B) and Spain / Greece retail ($4B), less associated loan loss reserves. While Citi Holdings is a mixed bag, its primary objective is to wind down some non-core businesses and reduce assets, and strategically "breaking even" in 2015.<ref>{{cite web|title=Citi: Focus on Execution|url= http://www.citigroup.com/citi/investor/data/p130305a.pdf|access-date=June 21, 2013}}</ref>

On February 27, 2009, Citigroup announced that the U.S. government would take a 36% [[Stock|equity]] stake in the company by converting US$25&nbsp;billion in emergency aid into [[common stock]] with a [[United States Treasury]] credit line of $45&nbsp;billion to prevent the bankruptcy of the company.<ref>{{cite web | url=http://edgar.secdatabase.com/642/95010309000421/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=February 27, 2009}}</ref> The government guaranteed losses on more than $300&nbsp;billion of troubled assets and injected $20&nbsp;billion immediately into the company. The salary of the CEO was set at $1 per year and the highest salary of employees was restricted to $500,000. Any compensation amount above $500,000 had to be paid with [[restricted stock]] that could not be sold by the employee until the emergency government aid was repaid in full.<ref>{{cite news | url=https://www.nytimes.com/2009/02/04/business/04pay.html | title=U.S. Plans $500,000 Cap on Executive Pay in Bailouts | first1=Edmund L. | last1=Andrews | first2=Vikas | last2=Bajaj | work=[[The New York Times]] | date=February 4, 2009 | url-access=limited}}</ref><ref>{{cite news | url=https://www.wsj.com/articles/SB123375514020647787 | title=Obama Lays Out Limits on Executive Pay | first1=Jonathan | last1=Weisman | first2=Joann S. | last2=Lublin | publisher=[[The Wall Street Journal]] | date=February 4, 2009 | url-access=subscription}}</ref> The U.S. government also gained control of half the seats in the board of directors, and the senior management was subjected to removal by the US government if there were poor performance. By December 2009, the U.S. government stake was reduced from a 36% stake to a 27% stake, after Citigroup sold $21&nbsp;billion of common shares and equity in the largest single share sale in U.S. history, surpassing Bank of America's $19&nbsp;billion share sale 1 month prior. By December 2010, Citigroup repaid the emergency aid in full and the U.S. government had made a $12&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=12000000000|start_year=2010}}}} in {{Inflation/year|US-GDP}}) profit on its investment in the company.<ref>{{cite news | url=https://www.reuters.com/article/us-citigroup-treasury-offering-idUSTRE6B55KP20101207 | title=U.S. exits Citigroup stake and earns $12 billion profit | first=David | last=Lawder | work=[[Reuters]] | date=December 7, 2010 | url-access=subscription}}</ref> Government restrictions on pay and oversight of the senior management were removed after the U.S. government sold its remaining 27% stake in December 2010.<ref>{{cite news | url=https://www.reuters.com/article/us-citigroup-pandit/citi-ceo-pandits-salary-soars-to-1-75-million-from-1-idUSTRE70K6YC20110121 | title=Citi CEO Pandit's salary soars to $1.75 million from $1 | first=Maria | last=Aspan | work=[[Reuters]] | date=January 21, 2011}}</ref>

On June 1, 2009, it was announced that Citigroup would be removed from the [[Dow Jones Industrial Average]] effective June 8, 2009, due to significant government ownership. Citigroup was replaced by Travelers Co.<ref>{{cite news | first=E.S. | last=Browning | title=Travelers, Cisco Replace Citi, GM in Dow | url=https://www.wsj.com/articles/SB124386244318072033 | work=[[The Wall Street Journal]] | date=June 1, 2009 | url-access=subscription}}</ref><ref>{{cite news | url=https://money.cnn.com/2009/06/01/news/companies/dow_jones/index.htm?postversion=2009060117 | title=Dow kicks out GM and Citigroup | work=[[CNNMoney]] | date=June 1, 2009}}</ref>

====Sale of Smith Barney (2009)====
Smith Barney, Citi's global private wealth management unit, provided brokerage, investment banking and asset management services to corporations, governments and individuals around the world. With over 800 offices worldwide, Smith Barney held 9.6&nbsp;million domestic client accounts, representing $1.562&nbsp;trillion in client assets worldwide.

On January 13, 2009, Citi announced the merger of Smith Barney with [[Morgan Stanley Wealth Management]]. Citi received $2.7&nbsp;billion and a 49% interest in the joint venture.<ref>{{cite web | url=http://edgar.secdatabase.com/310/95010309000089/filing-main.htm | title=Citigroup, Form 8-K, Current Report | publisher=[[U.S. Securities and Exchange Commission]] | date=January 14, 2009}}</ref><ref>{{cite news | url=https://www.cnbc.com/2009/01/13/citigroup-morgan-stanley-agree-to-merge-brokerages.html | title=Citigroup, Morgan Stanley Agree to Merge Brokerages | work=[[CNBC]] | date=January 13, 2009}}</ref><ref>{{cite news | url=https://money.cnn.com/2009/01/13/news/companies/citigroup/index.htm | title=Citi and Morgan to merge brokerages | work=[[CNNMoney]] | date=January 13, 2009}}</ref>

In June 2013, Citi sold its remaining 49% stake in Smith Barney to Morgan Stanley Wealth Management for $13.5&nbsp;billion following an appraisal by Perella Weinberg.<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2013-06-28/morgan-stanley-completes-purchase-of-brokerage-venture | title=Morgan Stanley Completes Purchase of Smith Barney Venture | first=Michael J. | last=Moore | work=[[Bloomberg L.P.]] | date=June 29, 2013}}</ref><ref>{{cite news | url=https://www.wsj.com/articles/BL-DLB-40237 | title=Pandit Missed Out on a Sweeter Smith Barney Deal | last=Lucchetti | first=Aaron | work=[[The Wall Street Journal]] | date=October 16, 2012 | url-access=subscription}}</ref>

===Return to profitability, denationalization (2010)===
In 2010, Citigroup achieved its first profitable year since 2007. It reported $10.6&nbsp;billion in net profit, compared with a $1.6&nbsp;billion loss in 2009.<ref>{{cite news | url=http://www.ft.com/cms/s/0/2e1f5e74-233f-11e0-b6a3-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/2e1f5e74-233f-11e0-b6a3-00144feab49a.html |archive-date=December 10, 2022 |url-access=subscription |url-status=live | title=Results mute celebrations at Citigroup | first=Francesco | last=Guererra | work=[[Financial Times]] | date=January 18, 2011}}</ref> Late in 2010, the government sold its remaining stock holding in the company, yielding an overall net profit to taxpayers of $12&nbsp;billion (~${{Format price|{{Inflation|index=US-GDP|value=12000000000|start_year=2010}}}} in {{Inflation/year|US-GDP}}).<ref>{{cite news | url=https://www.washingtonpost.com/wp-dyn/content/article/2010/12/07/AR2010120700091.html | title=Government sells remaining shares in Citigroup; investment to net $12 billion total profit for taxpayers | last=Dennis | first=Brady | newspaper=[[The Washington Post]] | date=December 7, 2010}}</ref> A special IRS tax exception given to Citi allowed the US Treasury to sell its shares at a profit, while it still owned Citigroup shares, which eventually netted $12&nbsp;billion. According to Treasury spokeswoman Nayyera Haq, "This (IRS tax) rule was designed to stop corporate raiders from using loss corporations to evade taxes and was never intended to address the unprecedented situation where the government owned shares in banks. And it was certainly not written to prevent the government from selling its shares for a profit."<ref>{{cite news | url=https://www.washingtonpost.com/wp-dyn/content/article/2009/12/15/AR2009121504534_2.html | title=U.S. gave up billions in tax money in deal for Citigroup's bailout repayment | last=Appelbaum | first=Binyamin | newspaper=[[The Washington Post]] | date=December 15, 2009}}</ref>

===Expansion of retail banking operations (2011)===
In 2011, Citi was the first bank to introduce digitized Smart Banking branches in Washington, D.C., New York, Tokyo and Busan (South Korea) while it continued renovating its entire branch network.<ref>{{cite press release | url=http://www.citigroup.com/citi/press/2011/110331a.htm | title=Citibank Opens Full-Service, Smart Banking Consumer Outlet at Chongqing Airport | publisher=Citigroup | date=March 31, 2011 | access-date=April 25, 2012 | archive-date=July 3, 2014 | archive-url=https://web.archive.org/web/20140703033413/http://www.citigroup.com/citi/press/2011/110331a.htm | url-status=dead }}</ref><ref>{{cite press release| url=http://www.citigroup.com/citi/press/2010/100413a.htm| title=Citibank Japan Ltd. Announces Opening of First Smart Banking Branches in Citi's Global Network| publisher=Citigroup| date=April 9, 2010| access-date=April 25, 2012| archive-date=March 4, 2016| archive-url=https://web.archive.org/web/20160304051905/http://www.citigroup.com/citi/press/2010/100413a.htm| url-status=dead}}</ref> New sales and service centers were also opened in Moscow and St. Petersburg. Citi Express modules, 24-hour service units, were introduced in Colombia. Citi opened additional branches in China, expanding its branch presence to 13 cities in China.<ref>{{cite news | url=http://www.scmp.com/business/banking-finance/article/1936181/why-citi-closing-branches-china | title=Why is Citi closing branches in China? | first=Liz | last=Mak | work=[[South China Morning Post]] | date=April 15, 2016}}</ref>

===Expansion of credit card operations (2011)===
Citi Branded Cards introduced several new products in 2011, including: Citi ThankYou, Citi Executive/[[AAdvantage]] and Citi Simplicity cards in the U.S. It also has Latin America partnership cards with Colombia-based airline Avianca and with Banamex and AeroMexico; and a merchant loyalty program in Europe. Citibank is also the first and currently the only international bank to be approved by Chinese regulators to issue credit cards under its own brand without cooperating with Chinese state-owned domestic banks.<ref>{{cite news | url=https://www.reuters.com/article/us-citi-china/citi-gets-approval-to-issue-credit-cards-in-china-idUSTRE8150LT20120206 | title=Citi gets approval to issue credit cards in China | first=Kazunori | last=Takada | work=[[Reuters]] | date=February 6, 2012}}</ref>

===Chinese investment banking joint venture (2012)===
In 2012, the Global Markets division and Orient Securities formed Citi Orient Securities, a Shanghai-based equity and debt brokerage operating in the Chinese market.<ref>{{cite news | url=https://www.financemagnates.com/institutional-forex/technology/citi-ties-up-with-chinese-stock-brokerage-to-form-china-orient-securities/ | title=Citi Ties up With Chinese Stock Brokerage to Form Citi Orient Securities | first=Adil | last=Siddiqui | work=Finance Magnates | date=August 13, 2012}}</ref> In January 2019, Citigroup announced that it sold its stake in the business to its Chinese partner.<ref>{{Cite news |date=January 8, 2019 |title=Citigroup to end Chinese securities JV to set up majority-owned venture |language=en |work=Reuters |url=https://www.reuters.com/article/us-citigroup-china-jointventure-idUSKCN1P210O |access-date=October 9, 2023}}</ref>

===Federal Reserve stress tests (2012–2016)===
The company failed the [[Comprehensive Capital Analysis and Review]] [[stress test]]s in 2012 due to Citi's high capital return plan and its international loans, which were rated by the Fed to be at higher risk than its domestic American loans.<ref>{{cite news | url=https://www.cbsnews.com/news/citigroup-other-big-us-banks-flunk-stress-tests/ | work=[[CBS News]] | title= Citigroup, other big US banks flunk 'stress tests' | date=November 15, 2012}}</ref><ref>{{cite news | url=https://www.huffpost.com/entry/stress-tests-citibank_n_1342928| title=These Guys Just Can't Cut It | work=[[HuffPost]] | first=Mark | last=Gongloff | date=March 13, 2012}}</ref><ref>{{cite news | url=https://blogs.wsj.com/deals/2012/03/13/stress-tests-official-statements-from-banks/ |title=Stress Tests: Official Statements From Banks | work=[[The Wall Street Journal]] | first=David | last=Benoit | date=March 13, 2012 | url-access=subscription}}</ref><ref>{{cite news | url=http://www.marketwatch.com/story/citi-among-banks-that-fail-fed-stress-test-2012-03-13 | title=Citi among banks that fail Fed stress test | first=Ronald D. | last=Orol | work=[[MarketWatch]] | date=March 13, 2012}}</ref><ref>{{cite news | url=https://www.forbes.com/sites/greatspeculations/2012/03/28/the-feds-stress-test-summary-results-and-implications/ | title=The Feds Stress Test Summary Results and Implications | work=[[Forbes]] | date=March 28, 2012}}</ref><ref>{{cite news | url=https://www.nytimes.com/2012/04/09/business/taking-the-measure-of-citigroup-and-bank-of-america.html | title=Taking the Measure of Citigroup and Bank of America | first=Nelson D. | last=Schwartz | work=[[The New York Times]] | date=April 8, 2012 | url-access=limited}}</ref>

In 2013, Sanjiv Das was replaced as head of CitiMortgage with [[Jane Fraser (banking)|Jane Fraser]], former head of Citi Private Bank.<ref>{{cite news | url=https://www.americanbanker.com/news/citi-replaces-das-with-fraser-in-possible-sign-of-mortgage-push | title=Citi Replaces Das with Fraser in Possible Sign of Mortgage Push | first=Maria | last=Aspan | work=[[American Banker]] | date=May 20, 2013 | url-access=subscription}}</ref>

The company failed the stress tests again in 2014, this time due to qualitative concerns.<ref>{{cite press release | url=https://www.federalreserve.gov/newsevents/press/bcreg/ccar_20140326.pdf | title=Comprehensive Capital Analysis and Review 2014: Assessment Framework and Results | publisher=[[Federal Reserve System]] | date=March 2014}}</ref><ref>{{cite news | url= https://dealbook.nytimes.com/2014/03/27/failing-stress-test-is-another-stumble-for-citigroup/ | title=Failing Stress Test Is Another Stumble for Citigroup | first1=Michael | last1=Corkery | first2=Jessica |last2=Silver-Greenberg | work=The New York Times | date=March 27, 2014 | url-access=limited}}</ref><ref>{{cite news | url=https://www.wsj.com/articles/citis-corbat-rushed-home-from-asian-trip-after-stress-test-failure-1395962880 | first1=Suzanne | last1=Kapner | first2=Stephanie | last2=Armour | first3=Julie | last3=Steinberg | title='Stress Test' Failure Sparked Scramble at Citigroup | work=[[The Wall Street Journal]] | date=March 27, 2014 | url-access=subscription}}</ref>

However, it passed the stress tests in 2015<ref>{{cite press release | url=https://www.federalreserve.gov/newsevents/press/bcreg/20150311a.htm| title=Federal Reserve releases results of Comprehensive Capital Analysis and Review (CCAR) | publisher=[[Federal Reserve System]] | date=March 11, 2015}}</ref><ref>{{cite news | url=https://money.cnn.com/2015/03/11/investing/fed-stress-tests-citigroup-pass/index.html | title=Citi passes Fed stress test but BofA gets an incomplete | last=Monica | first=Paul R. La | work=[[CNN]] | date=March 11, 2015}}</ref> and in 2016.<ref>{{cite news | url=https://www.wsj.com/articles/fed-approves-citigroups-capital-plan-1467232215 | title=Citigroup More Than Triples Its Dividend After Passing Stress Test | last=Rexrode | first=Christina | work=[[The Wall Street Journal]] | issn=0099-9660 | date=June 29, 2016| url-access=subscription}}</ref>

In February 2016, the company was subject to a $1.1&nbsp;billion fraud lawsuit filed by lender [[Rabobank]] and other investors as a result of the bankruptcy of Oceanografia SA, a Mexican oil services firm. The plaintiffs claimed that Citigroup conspired with Oceanografia to accept falsified work estimates.<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2016-02-27/citigroup-faces-fraud-suit-claiming-1-1-billion-in-losses | title=Citigroup Faces Fraud Suit Claiming $1.1 Billion in Losses | first1=David | last1=Voreacos | first2=Dakin | last2=Campbell | work=[[Bloomberg News]] | date=February 27, 2016 | url-access=subscription}}</ref> The courts found in favor of Citigroup.<ref>{{Cite web | url=https://casetext.com/case/osuna-v-citigroup-inc | title=Osuna v. Citigroup Inc. | via=casetext}}</ref>

In April 2016, Citigroup announced that it would eliminate its [[bad bank]], Citi Holdings.<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2016-04-15/citigroup-plans-to-eliminate-shrinking-citi-holdings-unit-chart | title=Citigroup Plans to Eliminate Shrinking Citi Holdings Unit | first=Dakin | last=Campbell | work=[[Bloomberg L.P.]] | date=April 15, 2016}}</ref>

====Spin-off of Napier Park Global Capital (2013)====
Under the leadership of CEO Michael Corbat, Citi Capital Advisors (CCA), formerly Citi Alternative Investments, was a [[hedge fund]] that offered various investment strategies across multiple asset classes. To comply with the [[Volcker Rule]], which limits bank ownership in hedge funds to no more than 3%, Citi spun off its hedge fund unit in 2013 and gave a majority of the company to its managers.<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2012-12-21/citigroup-said-to-give-cca-managers-75-stake-in-funds-for-free | title=Citigroup Said to Give CCA Managers 75% Fund Stake for Free | first=Donal | last=Griffin | work=[[Bloomberg L.P]] | date=February 28, 2012}}</ref> The spin-off of CCA created Napier Park Global Capital, a $6.8&nbsp;billion hedge fund with more than 100 employees in New York and London and managed by Jim O'Brien and Jonathan Dorfman.<ref>{{cite news | title=A Citi Hedge Fund Business Prepares for Life on Its Own | url=https://dealbook.nytimes.com/2013/02/28/a-citi-hedge-fund-business-prepares-for-life-on-its-own/| work=The New York Times | date=February 28, 2013}}</ref><ref>{{cite news | url=http://www.hedgeweek.com/2013/03/04/180971/napier-park-global-capital-completes-spinout-citigroup | title=Napier Park Global Capital completes spinout from Citigroup | work=Hedgeweek | date=March 4, 2013}}</ref><ref>{{cite news | url=http://www.efinancialnews.com/digest/2013-03-03/citigroup-spins-off-alternative-asset-management-arm | title=Citigroup spins off alternative asset management arm | work=Efinancialnews.com | date=March 3, 2013}}</ref><ref>{{cite press release | url=http://www.napierparkglobal.com/documents/FG/napierpark/news/18351_Napier_Park_Release_FINAL.pdf | title=Napier Park Global Capital Completes Spinout from Citigroup | publisher=Napier Park Global Capital | date=March 1, 2013}}</ref>

====Downsizing of consumer banking unit (2014)====
In October 2014, Citigroup announced its exit from consumer banking in 11 markets, including Costa Rica, El Salvador, Guatemala, Nicaragua, Panama, Peru, Japan, Guam, the Czech Republic, Egypt, South Korea (consumer finance only), and Hungary.<ref>{{cite news | url=https://www.bloomberg.com/news/articles/2014-10-14/citigroup-to-exit-consumer-banking-in-11-markets | title=Citigroup to Exit Consumer Banking in 11 Markets | first=Dakin | last=Campbell | work=[[Bloomberg L.P.]] | date=October 14, 2014}}</ref><ref>{{cite news | url=https://www.reuters.com/article/us-citigroup-results/citi-pulls-out-of-consumer-banking-in-11-countries-profit-jumps-idINKCN0I326820141014 | title=Citi pulls out of consumer banking in 11 countries, profit jumps | first1=Anil | last1=D'Silva | first2=David | last2=Henry | work=[[Reuters]] | date=October 14, 2014}}</ref>

===2015 onwards===
In May 2015, the bank announced the sale of its margin foreign exchange business, including [[CitiFX Pro]] and TradeStream, to [[FXCM]] and [[SAXO Bank]] of [[Denmark]]. Despite this deal, industry surveys pegged Citi as the biggest banking player in the forex market. The company's remaining foreign exchange sales & trading businesses continued operating in the wake of this deal under the leadership of James Bindler, who succeeded Jeff Feig as the firm's global head of foreign exchange in 2014.<ref>{{cite news | url=https://www.reuters.com/article/us-forex-citifxpro-sale/citigroup-selling-retail-online-fx-trading-platform-to-fxcm-saxo-bank-idUSKBN0O724N20150522 | title=Citigroup selling retail online FX trading platform to FXCM, Saxo Bank |first=Patrick | last=Graham | work=[[Reuters]] |date=May 22, 2015}}</ref><ref>{{cite news |first=Anna | last=Prior | url=https://www.wsj.com/articles/citigroup-names-james-bindler-currencies-chief-1403281752 |title=Citigroup Names James Bindler Currencies Chief | work=[[The Wall Street Journal]] | date=June 20, 2014 | url-access=subscription}}</ref>

In November 2015, [[Springleaf]] acquired [[OneMain Financial]] from Citigroup.<ref>{{cite press release | url=http://www.businesswire.com/news/home/20150303005359/en/Springleaf-Financial-Acquire-OneMain-Financial | title=Springleaf Financial to Acquire OneMain Financial | publisher=[[Business Wire]] | date=March 3, 2015}}</ref><ref>{{cite press release | url=http://www.businesswire.com/news/home/20151116006545/en/Springleaf-Holdings-Announces-Closing-OneMain-Acquisition-Ticker | title=Springleaf Holdings Announces Closing of OneMain Acquisition and Ticker Symbol Change | publisher=[[Business Wire]] | date=November 16, 2015}}</ref>

In February 2016, Citi sold its retail and commercial banking operations in Panama and Costa Rica to the [[Bank of Nova Scotia]] (Scotiabank) for $360&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=360000000|start_year=2016}}}} in {{Inflation/year|US-GDP}}). The operations sold include 27 branches serving approximately 250,000 clients. Citi continues to offer corporate and institutional banking and wealth management in Panama and Costa Rica.<ref>{{cite press release | url=http://www.marketwired.com/press-release/scotiabank-closes-deal-acquire-citigroups-retail-commercial-banking-operations-panama-tsx-bns-2092680.htm | title=Scotiabank Closes Deal to Acquire Citigroup's Retail and Commercial Banking Operations in Panama and Costa Rica |publisher=[[Marketwired]] | date=February 1, 2016}}</ref> On April 1, Citigroup became the exclusive issuer of Costco-branded credit cards.<ref>{{cite news | url=https://www.latimes.com/business/la-fi-costco-visa-20150302-story.html | title=Costco names Citi, Visa as new credit card partners after AmEx deal ends | first=Javier | last=Panzar | work=[[Los Angeles Times]] | date=March 2, 2015 | url-access=limited}}</ref> In April 2016, Citi was given regulatory approval for its "living will", its plans to shut down operations in the event of another financial crisis.<ref>{{cite news | url=https://www.nytimes.com/2016/04/14/business/dealbook/citigroups-living-will-passes-muster-but-offers-few-insights.html | title=Citigroup's 'Living Will' Passes Muster but Offers Few Insights | first=Steven J. | last=Lubben | work=[[The New York Times]] | date=April 13, 2016 | url-access=limited}}</ref>

In response to the [[COVID-19 pandemic]], Citi provided support to cardholders including waiving late fees.<ref>{{Cite web|url=https://www.cnbc.com/select/citi-coronavirus-assistance/|title=Here's what Citi is doing for coronavirus assistance|last=White|first=Alexandria|date=March 20, 2020|website=CNBC|language=en|access-date=April 9, 2020}}</ref> It also announced that some lower paid employees would receive a one-off payment of US$1,000 to help them through the crisis.<ref>{{Cite web|url=https://www.cnbc.com/2020/03/23/citigroup-is-giving-some-employees-a-1000-bonus-amid-coronavirus.html|title=Citigroup is giving some employees a $1,000 bonus for working through the coronavirus pandemic|last=Son|first=Hugh|date=March 23, 2020 |website=CNBC| language=en  |access-date=April 9, 2020}}</ref> This was not just limited to the US. In Singapore where Citi had a large operation, low paid staff would receive S$1,200.<ref>{{Cite web|url=https://www.straitstimes.com/business/banking/citi-singapore-employees-to-receive-1200-cash-in-april-as-covid-19-aid|title=Citi Singapore employees to receive $1,200 cash in April as Covid-19 aid |date=April 9, 2020|website=[[The Straits Times]]|language=en|access-date=April 9, 2020}}</ref>

In August 2020, Citi mistakenly wired $900&nbsp;million (~${{Format price|{{Inflation|index=US-GDP|value=900000000|start_year=2020}}}} in {{Inflation/year|US-GDP}}) to the creditors of one of its clients, the American cosmetics corporation [[Revlon]]. Citi sued to get most of the money back but as of June 2022 had been unsuccessful.<ref>{{cite web |url=https://www.bloomberg.com/news/articles/2022-06-16/citi-s-900-million-revlon-gaffe-risks-getting-even-more-painful |title=Citi's $900 Million Revlon Gaffe Risks Getting Even More Painful |first1=Jeremy |last1=Hill |first2=Eliza |last2=Ronalds-Hannon |work=Bloomberg |date=June 16, 2022 |access-date=July 22, 2022}}</ref> In October, the same year, Citigroup was fined $400&nbsp;million by the US bank regulators as a result of their risk in control systems and was ordered to update their technology. The company will have four months to make a new plan and submit it to the Federal Reserve.<ref>{{cite news |url=https://www.ft.com/content/84c831fb-5088-41cd-bcb6-0f0daf968c43 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/84c831fb-5088-41cd-bcb6-0f0daf968c43 |archive-date=December 10, 2022 |url-access=subscription |url-status=live |title=Citigroup fined $400m over internal controls 'deficiencies' |work=[[Financial Times]] |date=October 9, 2020 |author=Robert Armstrong|access-date=October 8, 2020}}</ref>{{Update inline|date=November 2021}}

In November 2023, Citigroup began initiating layoffs as part of a corporate overhaul. The layoffs were part of a restructuring plan announced by CEO Jane Fraser, which includes the formation of five new divisions and the departure of several senior executives. The move was in response to Citigroup's stock performance and increased expenses. The full extent of the job cuts, referred to internally as "Project Bora Bora," were reported to involve a reduction of at least 10% or 20 000 of the workforce in several departments.<ref>{{Cite web |last=Son |first=Hugh |date=November 15, 2023 |title=Citigroup begins layoffs as part of CEO Jane Fraser's corporate overhaul |url=https://www.cnbc.com/2023/11/15/citigroup-layoffs-begin-in-jane-fraser-overhaul.html |access-date=November 15, 2023 |website=CNBC |language=en}}</ref><ref>{{Cite web |last=Son |first=Hugh |date=2024-01-12 |title=Citigroup is cutting 10% of its workforce in CEO Jane Fraser's corporate overhaul |url=https://www.cnbc.com/2024/01/12/citigroup-cutting-10percent-of-workforce.html |access-date=2024-01-14 |website=CNBC |language=en}}</ref>

====Combination of Markets and Securities Services (2019)====
In 2019, Citi combined its Global Markets and Securities Services business into Markets & Securities Services, which includes broad trading and execution capabilities in addition to [[custodian bank|custody]], clearing, financing and hedging services.<ref>{{Cite web|url=https://www.reuters.com/article/us-citigroup-markets-idUSKCN1UO22D|title=Citi combines its stock trading and prime brokerage business|last=Moise|first=Imani|date=July 30, 2019|website=Reuters|language=en|access-date=July 30, 2019}}</ref>

====Shrinking of consumer banking unit (2021–2025)====
In February 2021, [[Jane Fraser (banking)|Jane Fraser]], became CEO of the company, the first female CEO of a Big Four bank.<ref>{{cite news  |url=https://www.wsj.com/articles/citigroup-ceo-michael-corbat-to-retire-in-february-jane-fraser-named-successor-11599742205 |title=Citigroup CEO Michael Corbat to Retire in February, Jane Fraser Named Successor |last=Sebastian |first=Dave |work=[[The Wall Street Journal]] |date=September 10, 2020 | url-access=subscription}}</ref>

In April 2021, Citi announced it would exit its consumer banking operations in 13 markets, including Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam. In January 2022, it was announced that [[United Overseas Bank|UOB]] would purchase Citi's consumer banking business in Indonesia, Malaysia, Thailand, and Vietnam for approximately $4.9bn.<ref>{{Cite news |last1=Sreenivasan |first1=Ven |last2=Chern |first2=Kang Wan |date=January 14, 2022 |title=UOB to acquire Citi's consumer business in 4 Asean markets for almost $5b |language=en |work=The Straits Times |url=https://www.straitstimes.com/business/banking/uob-to-buy-citis-consumer-business-in-4-asean-countries-for-about-49-billion |access-date=October 9, 2023 |issn=0585-3923}}</ref> In August 2023, it was announced [[DBS Bank]] had acquired Citi's consumer banking business in Taiwan, Citi Consumer Taiwan, for a total consideration of $706m.<ref>{{Cite news |last=Li |first=Selena |date=August 14, 2023 |title=US bank Citi completes sale of Taiwan consumer unit to Singapore's DBS |language=en |work=Reuters |url=https://www.reuters.com/markets/deals/us-bank-citi-completes-sale-taiwan-consumer-unit-singapores-dbs-2023-08-14/ |access-date=August 14, 2023}}</ref> Citi will continue to operate its consumer banking businesses in the US, Canada, Europe and in only 4 other markets: Hong Kong, Singapore, London and the UAE across the entire APAC and EMEA regions.<ref>{{cite news |newspaper=[[BBC]] 
|url=https://www.bbc.com/news/business-56755610 |title=Citigroup is closing its consumer banking operations in 13 markets across Asia, Europe and the Middle East. |date=April 16, 2021}}</ref>

In January 2022, Citi further announced its plan to exit consumer banking in [[Mexico]], as well as small-business and middle-market banking operations.<ref>{{cite news
|url=https://www.reuters.com/business/citi-exit-mexican-consumer-banking-business-strategy-revamp-2022-01-11/|title= Citi to exit Mexican consumer business as part of strategy revamp
|work=[[Reuters]] |date=January 12, 2022 |author=David Henry |access-date=January 12, 2022}}</ref> On March 1, 2022, Citi disclosed an exposure of over $10bn in Russian assets, which may be materially affected by Russia's expulsion from the [[SWIFT]] banking system.<ref>{{Cite news |last1=Henry |first1=David |last2=Nishant |first2=Niket |date=February 28, 2022 |title=Citigroup says total Russian exposure nearly $10 billion |language=en |work=Reuters 
|url=https://www.reuters.com/business/finance/citigroup-flags-54-bln-exposure-russian-assets-2022-02-28/ |access-date=March 1, 2022}}</ref>

In September 2022, Citi was planning to shutter its retail bank business in the United Kingdom.<ref>{{cite news |newspaper=[[Financial Times]] 
| url=https://www.ft.com/content/176f3bd4-a953-43ba-ab5b-14ca1ec9b93d | archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/176f3bd4-a953-43ba-ab5b-14ca1ec9b93d |archive-date=December 10, 2022 |url-access=subscription |title=Citigroup to wind down UK retail bank |date=September 22, 2022}}</ref> In January 2024, Citi announced that it would be cutting 20,000 jobs from the company.<ref>{{Cite web |last=Fort |first=Hugh |date=2024-01-15 |title=Citigroup to cut 20,000 jobs |url=https://www.whatjobs.com/news/usa/us-business-news/citigroup-to-cut-20000-jobs/ |access-date=2024-01-17 |website=Employment & Business News |language=en-US}}</ref> In June 2024, at its biennial Investor Day, Jane focused the conversation on Citi's Securities Services business, the most profitable of its five business units.

In October 2024, it was reported that the company would move significant portions of its financial infrastructure to [[Google Cloud]].<ref>{{Cite web |last=Castillo |first=Michael del |date=2024-10-29 |title=Citi moves infrastructure to Google Cloud as part of broader AI push |url=https://fortune.com/2024/10/28/citi-moves-vital-infrastructure-to-google-cloud-as-part-of-broader-ai-push/ |access-date=2024-10-29 |website=Fortune |language=en}}</ref>

In December 2024, Citigroup along with Bank of America announced that they are exiting the  Net-Zero Banking Alliance (NZBA).<ref>{{Cite news |date=January 1, 2025 |title=Citigroup, BofA join US lenders in exiting Net-Zero Banking Alliance |url=https://www.reuters.com/business/finance/citigroup-joins-us-lenders-exiting-net-zero-banking-alliance-2024-12-31/}}</ref>

In March 2025, Citigroup seeks to reduce reliance on external IT contractors, cutting their share by 20% to 50%. They intend to hire full-time employees instead, increasing their technology workforce to 50,000. Improved risk management, data governance after regulatory penalties, including a $136 million for data issues, have prompted such measures. A recent $22.9 million fraud case which involved external contractors is also cited by Citigroup as a reason for the shift. The bank intend to reduce its external suppliers from 144 to 50 and plans to shift IT operations from Rutherford, NJ, to Jersey City. The bank’s stock fell 0.7%, accumulating a 4.4% loss for the year.<ref>{{Cite news |date=March 13, 2025 |title=Exclusive: Citigroup plans to slash IT contractors, hire staff to improve controls |url=https://www.reuters.com/business/finance/citigroup-plans-slash-it-contractors-hire-staff-improve-controls-2025-03-13/#:~:text=LONDON%2FNEW%20YORK%2C%20March%2013,data%20governance%20and%20deficient%20controls}}</ref>

====Involvement in controlling the sale of guns====
In 2018, ''[[The New York Times]]'' reported about Citi's actions, under the direction of CEO [[Michael Corbat]], to intervene in the matter of gun control. In particular, their credit card policies were set to restrict the sale of guns below age 21.<ref>{{cite news |url=https://www.nytimes.com/2018/03/26/business/citigroup-guns.html   |title=Citigroup Acted. Now, Two New Ideas on How Banks Can Limit Gun Sales. |first=Andrew Ross |last=Sorkin |work=The New York Times |date=March 26, 2018}}</ref>