Citi

Citigroup Inc. or Citi is an American banking and financial service company corporation headquartered in New York City.
==History==
Citi came to blight in 1998 after the mergers of Citicorp and Travelers Group, creating a $140 billion firm with assets of almost $700 billion. John S. Reed, formerly of Citicorp was named the president, while Sanford Weill, formerly of Travelers Group, was named the vice president of the newly merged Citi. Joe J. Plumeri was named the CEO of the company, and was granted oversight of over 450 Citi locations. Plumeri's valiant efforts helped boost Citi's earnings from $108 million to $415 million in one year, an increase of nearly 300%. He unexpectedly resigned from Citi in January 2000.
Later in 2000, Citigroup acquired Associates First Capital Corporation for $31.1 billion in stock. Citi settled with the Federal Trade Commission by agreeing to pay $240 million to customers who had been victims of a variety of predatory practices, mortgages with optional credit insurance, and deceptive marketing practices. In 2001, Citigroup made acquisitions for European American Bank, in July, for $1.9 billion, and Banamex in August, for $12.5 billion.
By 2007, there was a subprime mortgage crisis, which led to Citi laying off about 17,000 employees, nearly 5% of their employment rate. The financial crisis worsened overtime, and by January 7, 2008, Citi laid off nearly 327,000 employees from its workforce. In November 2008, Citi became insolvent, despite its receipt of $25 billion in taxpayer-funded federal Troubled Asset Relief Program funds. Citigroup and federal regulators approved a plan to stabilize the company and forestall a further deterioration in the company's value. The federal government announced a massive bailout for Citi designed to rescue the company from bankruptcy while giving the government a major say in its operations. A joint statement by the Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation helped with a bailout by the the government to back about $306 billion in loans and securities and directly invest about $20 billion in the company. The Treasury Department provided $20 billion in Troubled Asset Relief Program fundings in addition to $25 billion given in October. The Treasury Department, the Federal Reserve and the FDIC agreed to cover 90% of the losses on Citi's $335 billion portfolio after Citi absorbed the first $29 billion in losses. The Treasury Department would assume the first $5 billion in losses; the FDIC would absorb the next $10 billion; then the Federal Reserve would assume the rest of the risk.
The bank eventually gave the Treasury Department $27 billion of preferred shares and warrants to acquire common stock. The federal 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. As a condition of the federal assistance, Citi's dividend payment was reduced to $0.01 per share.
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