Citigroup

   

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Citigroup (NYSE:C (http://finance.yahoo.com/q?s=c)) is the largest financial services conglomerate in the world. During the past 3 years it has been by most measures the largest company in the world, with the largest profits and the most assets. Its planned formation was announced on April 7, 1998 through a merger of Citicorp and Travelers Group. Citigroup is the first financial services company in the U.S. to bring together banking, insurance, and investments under one umbrella.

Despite its size, it currently only has about a 5 percent market share in financial services, and its amount on deposit is dwarfed by international banks (especially in Japan), which have seen much more consolidation. Former president Gerald Ford is on the board of directors. It is listed at the New York Stock Exchange and is part of the Dow.

The UK headquarters of Citigroup, Canary Wharf, London
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The UK headquarters of Citigroup, Canary Wharf, London

Citigroup was formed in 1998 by the then-illegal merger of Citicorp (a bank holding company for Citibank) and Travelers Insurance. This was illegal because the Glass-Steagall Act (legislation stemming from the United States' Great Depression era) did not allow banks to merge with insurance and brokerage companies. (At the time Glass-Steagall's enforcement was already being phased out.) The Federal Reserve granted the parties a two-year trial period prior to the merger, and subsequently Glass-Steagall was invalidated by the passing of the Gramm-Leach-Bliley Financial Services Modernization act of 1999. The merger was orchestrated by chairman Sanford I. Weill. Sallie Krawcheck is CFO and head of strategy. With 275,000 employees CitiGroup manages 200 million customers accounts across six continents in more than 100 countries.

Citigroup removed three senior executives in the wake of a banking scandal in Japan. Deryck Maughan, a Citigroup vice chairman and head of Citigroup International, Thomas W. Jones, chairman and chief executive of the global investment management division, and Peter K. Scaturro, head of Citi's private bank, will be leaving the company. Maughan had been with Citigroup or its predecessor companies since 1983. Jones and Scaturro were both members of the Citigroup management committee. A memo from Chief Executive Charles Prince said that Citigroup President Robert Willumstad would take charge of the businesses run by the three departing executives.

It's most famous office building is the Citigroup Center, a diagonal-roof skyscraper located in New York City's Midtown Manhattan, although it barely has any office presence in there, its headquarters moved across the block to an anonymous building on Park Avenue.

Divisions

  • Global Consumer Group
    • Cards (credit cards)
      • World’s largest provider of credit cards
      • Second Quarter '04 Net Income of $1.012 billion
    • Consumer Finance
      • Largest Consumer Finance company in the world
      • Second Quarter '04 Net Income of $594 million
    • Retail Banking
      • Citibank: highest-rated, leading global brand
      • Second Quarter '04 Net Income of $1.156 billion
  • Global Corporate and Investment Bank
    • Capital Markets & Banking
      • #1 underwriter of Combined Debt and Equity and Equity-related transactions
      • Second Quarter '04 Net Income of $1.502 billion
    • Global Transaction Services
      • Leading provider of transaction products; $7.0 trillion in assets under custody
      • Second Quarter '04 Net Income of $261 million
  • Global Investment Management
    • Life Insurance & Annuities (Life and Annuity Insurance Underwriter)
      • One of the fastest growing life insurers in the U.S with expanding international presence
      • Second Quarter '04 Net Income of $230 million
    • Private Bank
      • Offers widest range of services to more than 25,000 of the world’s most successful and influential families
      • Second Quarter '04 Net Income of $152 million
    • Asset Management (Mutual Funds, Pension Funds, and investment for institutions)
      • A leader with $490.5 billion in assets under management
      • Second Quarter '04 Net Income of $69 million
  • Smith Barney
    • Private Client Services (Stock Brokerage)
      • A leader in managed accounts with $1.087 trillion in total client assets
      • Second Quarter '04 Net Income of $209 million


Subsidiaries

Diversity

Citigroup recieved a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report.

See also

External links



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