On October 22, 2001, Citigroup was sued for violating federal securities laws by distorting Citigroup`s exposure to Enron in its 2001 Annual Report and elsewhere and failing to disclose the true extent of Citigroup`s legal liability under its „structured finance transactions“ with Enron. [206] In 2003, Citigroup paid $145 million in fines and penalties to settle claims by the Securities and Exchange Commission and the Manhattan District Attorney`s Office. [207] Brent McIntosh joined Citi in October 2021 as General Counsel and Corporate Secretary. Brent leads Citi`s global legal team, including Citi`s security and investigation services, and oversees Citi`s independent compliance risk management. In July 2015, Citigroup was fined $70 million by the U.S. Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency and ordered to pay $700 million to its customers. Citigroup had engaged in illegal practices in the marketing of ancillary products for credit cards, including credit monitoring, debt protection products and portfolio protection services. [203] [204] In July 2010, Citigroup agreed to pay $75 million to settle civil charges that misled investors about potential losses from high-risk mortgages. The U.S. Securities and Exchange Commission said Citigroup made misleading statements about the company`s exposure to subprime mortgages. In 2007, Citigroup said its exposure was less than $13 billion, when in fact it was more than $50 billion.

[194] [195] On February 27, 2009, Citigroup announced that the U.S. government would take a 36% stake in the company by converting $25 billion in emergency relief into common stock, with a $45 billion line of credit from the U.S. Treasury Department to prevent the company`s bankruptcy. [120] The government guaranteed losses on more than $300 billion of problematic assets and immediately injected $20 billion into the company. The CEO`s salary was set at $1 per year and the highest salary for employees was capped at $500,000. Any compensation over $500,000 had to be paid with limited inventory that could not be sold by the employee until the state`s emergency assistance had been fully reimbursed. [121] [122] The U.S. government also took control of half of the board seats, and management was removed by the U.S.

government for poor performance. In December 2009, the U.S. government stake was reduced from a 36% stake to a 27% stake after Citigroup sold $21 billion worth of common stock and stock in the largest single stock sale in U.S. history, surpassing Bank of America`s $19 billion stock sale 1 month earlier. By December 2010, Citigroup had repaid the emergency aid in full and the U.S. government had made a profit of $12 billion from its investment in the company. [123] Government restrictions on executive compensation and oversight were lifted after the U.S. government sold its remaining 27% interest in December 2010.

[124] Brent is originally from Michigan and holds a Bachelor of Arts in Economics and Political Science from the University of Michigan and a Juris Doctor from Yale Law School. After law school, he clerked for two federal appeals judges, Dennis Jacobs of the Second Circuit and Laurence H. Silberman of the DC Circuit. Brent is a member of the Board of Directors of the Alexander Hamilton Society, the Advisory Board of the National Security Institute of the Antonin Scalia School of Law at George Mason University, and the Advisory Board of the Official Monetary and Financial Institutions Forum. He is a member of the Council on Foreign Relations, where he previously served as Senior Fellow for International Economics and Finance, as well as the Bretton Woods Committee and the International Institute for Strategic Studies. In 2010, Citigroup achieved its first profitable year since 2007. It reported net income of $10.6 billion, compared to a loss of $1.6 billion in 2009. [132] In late 2010, the government sold its remaining shares in the company, giving taxpayers a total net profit of $12 billion. [133] A special IRS tax exemption granted to Citi allowed the U.S. Treasury to sell its shares at a profit while holding Citigroup shares, ultimately raising $12 billion. According to Finance spokeswoman Nayyera Haq, „This (IRS tax) rule was designed to prevent corporate thieves from using loss-making companies for tax evasion and was never intended to remedy the unprecedented situation in which the government held shares in banks. And it certainly wasn`t written to stop the government from selling its shares at a profit.

[134] The information provided through this application has not been created or modified specifically for non-Malaysian customers and these promotions and facilities are available to non-Malaysian residents. Earn amazing cash and plane tickets to Paris, Seoul, Sydney, London and Tokyo with your Citi credit card Between 1998 and 2014, Citigroup spent nearly $100 million lobbying the federal government. [250] In 2008, Citigroup was the 16th largest political campaign donor in the United States, of any organization, according to OpenSecrets. However, Weill said at the time of the merger that they believed „the legislation will change during that time.“ We have had enough discussions to believe that this will not be a problem. [23] Indeed, the passage of the Gramm-Leach-Bliley Act in November 1999 confirmed Reed and Weill`s views and opened the door to financial services conglomerates offering a mix of commercial banking, investment banking, insurance underwriting and brokerage. [69] This list includes only presidents since Citigroup`s inception in 1998; For a complete list of chairmen, including Citigroup`s predecessors, see List of Citigroup chairmen. In September 1992, Travelers Insurance, which had suffered from low real estate investment[23] and suffered significant losses after Hurricane Andrew,[65] formed a strategic alliance with Primerica, which would lead to a merger into a single company in December 1993. With the acquisition, the group became Travelers Inc. The business was expanded to include property and casualty insurance as well as life and annuity insurance. Meanwhile, the distinctive red Traveller logo, also acquired under the agreement, has been applied to all companies within the newly named organisation. During this time, Travelers Shearson acquired Lehman – a brokerage and asset management firm run by Weill until 1985[23] – and merged it with Smith Barney.

On January 13, 2009, Citi announced the merger of Smith Barney with Morgan Stanley Wealth Management. Citi received $2.7 billion and a 49% stake in the joint venture. [127] [128] [129] On March 26, 2014, the Board of Governors of the Federal Reserve reported that Citigroup was one of 5 financial institutions that failed its stress tests. Unlike the failed 2012 stress test, Citigroup failed due to qualitative concerns that remained unresolved despite regulatory warnings. The report specifically states that Citigroup failed to „forecast revenue and losses in a stressful scenario for significant parts of the company`s global operations and develop scenarios for its internal stress tests that adequately reflect its overall business activities and risks.“ [150] [151] [152] From 2017 to 2019, Brent served as General Counsel to the Treasury, leading the Department`s approximately 2,000 lawyers and leading regulatory reform efforts.