Editing Citigroup (section)

====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>