The Shaky and Wealthy History of Citigroup Essay

Citigroup includes a long, unpredictable and wealthy history, we were holding founded in June 18, 1812 the financial institution was at first called The town Bank of recent York. Samuel Osgood was elected since the initially President from the company. October 9, 98, Citigroup was created following the 140 billion money merger from the City Lender of New You are able to or commonly known as Citicorp and Travelers Group this came up with the world's most significant financial services business. (Martin, Mitchell). Citigroup has the world's largest financial services network, spanning to 140 countries with around 16, 500 offices around the world. The company at present employs about 260, 1000 staff around the world, which is straight down from 267, 150 in 2010, according to Forbes. (Global 500). The business has faced a good amount of scams in the past just like the Standard Oil-dominated which involved the Admin of the Treasury. Treasury connection, trading bond, many different economic scandals that have been cause due to a poor purchase of Salomon Siblings which Citibank later abandoned in 2003, foreclosure scandal and far way too many scandal that messed up the company's reputation. (Chittum, Ryan). Additionally they run into authorities issues just like bankruptcy 3 times and getting taken over by the United States Government who have bailed them out of bankruptcy. (Chittum, Ryan). They did launch a mobile phone bank service or application in 2008. (Chittum, Ryan). They bought away Primerica to allow them to to sell life insurance, Salomon Brothers which was an important bond supplier and expense bank, Western european American Lender, Banamex and many other acquisitions. (Chittum, Ryan). This year Citigroup agreed to pay installment payments on your 2 billion dollars dollars to pay the portion of a settlement with the financial industry because of their massive home foreclosure scandal. Concerning their current position they are really working on recovering the companies identity and to display people that the business has changed. Citigroup has regarding 157 billion dollars dollars' well worth of legacy assets, and Citi has been around a cost reducing drive considering that the financial crisis. They also said they're going to cut 11, 000 work cuts, in 2013. This just adds to the thousands of people they already released since 2008. Basely the company has to perform a lot of job, but the bright-side is there is a new CEO, and " The good news is we all looked at the essential drivers with the business. Our operating earnings, expenses…all items heading the right way, " this was said by CEO Jordan Corbat (Ahmed, Shai). A Legacy property is " an asset which was in a firm for way too long that it in fact has misplaced its original value, it can outdated, outdated or has lost its productivity” (Legacy Asset). Citigroup plans to cut bonus simply by 10%, as well as the main thing is the CEO is not going to get compensated his 12-15 million dollar pay package. This is voted by shareholders, but not by the business, but the bright-side is that the business is up 34% o discuss. (Farrell, Maureen). When you look into Citigroup's balance sheet and salary statement for the past three or perhaps five years we see which the company is definitely making a profit compare to 2009 where they were losing regarding 15 billion dollars dollars as seen in chart 1 . four and in the 2nd graph. However when you glance at the next year the come did make more money, in the past yr of 2012 they suffered losses where they start at 3 billion, but went down to 2 billion dollars. The reason why I do think they did the reason is , they paid a good amount of money for settlements they did this year. The company's total assets happened a big volume in 2009, and since then they did not get to the two trillion dollars mark provides they were right now there in the past. One key thing that Citibank is doing proper is decreasing their total liabilities. What is important for them is usually gaining benefit in total stockholder equity annually since 2009 (Balance Linen | Citibank, Inc. ). The reason why this is important because, is at 2008 stocks and options for Citigroup was 200 dollars per share, and after that in 2009 the stock travelled as low as 12 cents. Till this day the...

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