Bailout Bank Bio: Citigroup Inc.

Dec 14, 2009 | 5 min read | Print Article

Citigroup continues to be one of the largest recipients of taxpayer assistance under TARP (the financial industry bailout). Citigroup is participating in three separate TARP programs. Under the main TARP vehicle, Capital Purchase Program (aka the Healthy Bank Program), Citigroup received $25 billion dollars. It also received $20 billion under the Targeted Investment Program. In addition to receiving capital, Citigroup is the sole participant in Treasury's Asset Guarantee Program where Treasury guarantees up to $5 billion dollars of loss. Citigroup's subsidiary CitiMortgage also may receive up to $2.1 billion for mortgage modifications made under the Home Affordable Modifcation Program.
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March 26, 2009

The federal government announced that it was investing an additional $20 billion in Citigroup under the Troubled Asset Relief Program (TARP). This is on top of an initial infusion of $25 billion in October. Treasury has also pledged additional support to guard against potential losses the bank may incur on its existing assets, which are backed by residential and commercial mortgages. Those assets are currently valued at $306 billion. Over the past week, Citigroup’s value had declined by more than 50 percent. Under the TARP agreement, executive compensation and dividend payments will face new limits.

Initially, Citigroup Inc. received $25 billion of the first $125 billion from the $700 billion bailout bill. It is one of the top financial services companies in the world, with some 200 million customer accounts in more than 100 countries. Citigroup was formed through one of the largest mergers in history; combining the banking giant Citicorp with financial conglomerate Travelers Group in 1998. Citigroup subsequently spun off Traveler’s company in 2002, and earlier this year, Travelers paid Citigroup millions of dollars to buy the famous red umbrella logo back.

Citigroup first attempted to acquire Wachovia before Wells Fargo & Co (another giant in the financial service industry) made a better offer that did not rely on help from the government. The merger is expected to be completed by the end of 2008.

One of the problems hampering Citigroup’s acquisition strategy is its financial condition. Citigroup has reported major losses in the past four financial quarters. Last month, Citigroup said it lost $2.8 billion. This puts Citigroup’s losses over the past 12 months at $20.2 billion.

TCS Statement on Looming Shutdown and Eliminating the Debt Limit

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Bailout Bank Bio: Citigroup Inc

Federal Equity Investment	Up to $2.09 billion committed under HAMP $5 billion committed (1/16/2009) $20 billion disbursed (11/23/2008) $25 billion disburse (10/28/2008)
Total Revenue	$130,005,000,000 (2008) $159,229,000,000 (2007)
Net Income (Loss)	$(27,684,000,000) (2008) $3,617,000,000 (2007)
Number of Employees	276,000
Corporate Headquarters	New York, New York
Business Sector	Banking
Officers and Directors	Vikram Pandit, Chief Executive Officer, Director Other Officers and Directors
Corporate Website	www.citigroup.com
Executive Compensation	Citigroup Inc.