 | |
| Company type | Subsidiary |
|---|---|
| Industry | Financial services |
| Founded | June 16, 1812; 213 years ago (1812-06-16) (as City Bank of New York) |
| Founder | Samuel Osgood |
| Headquarters | New York City, U.S. |
Key people |
|
| Products | |
| Parent | Citigroup |
| Website | citi |
| Footnotes / references [1] | |
Citibank, N.A. ("N. A." stands for "National Association"; stylized ascitibank) is the primary U.S. banking subsidiary ofCitigroup, afinancial servicesmultinational corporation.[2] Citibank was founded in 1812 asCity Bank of New York, and later becameFirst National City Bank of New York.[3] The bank hasbranches in 19 countries.[1] The U.S. branches are concentrated in six metropolitan areas:New York City,Chicago,Los Angeles,San Francisco,Washington, D.C., andMiami.[1]
As of 2023, Citibank is the third-largest bank in the United States in terms of assets.[4]
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The City Bank of New York was founded on June 16, 1812.[5] The first president of the City Bank was the statesman and retired Colonel,Samuel Osgood. After Osgood's death in August 1813,William Few became President of the bank, staying until 1817, followed by Peter Stagg (1817–1825), Thomas Smith (1825–1827),Isaac Wright (1827–1832), andThomas Bloodgood (1832–1843). After thePanic of 1837,Moses Taylor acquired control of the company.[6] During Taylor's ascendancy, the bank functioned largely as a treasury and finance center for Taylor's own extensive business empire.[7] Later presidents of the bank includedGorham A. Worth (1843–1856), Moses Taylor himself (1856–1882), Taylor's son-in-lawPercy Rivington Pyne I, andJames Stillman (1891–1909).[6]
In 1831, City Bank was the site of one ofAmerica's first bank heists when two burglars, James Honeyman and William J. Murray,[8] made off with tens of thousands of dollars' worth of bank notes, and 398gold doubloons,[9][8] the equivalent of $52 million in 2013 currency.[10]
The bank financed war bonds for theWar of 1812, serving as a founding member of the financial clearinghouse in New York (1853), underwriting theUnion during theAmerican Civil War with $50 million in war bonds, opening the first foreign exchange department of any bank (1897), and receiving a $5 million deposit to be given to Spain for the US acquisition of thePhilippines (1899). In 1865, the bank joined the national banking system of the United States under theNational Bank Act and became TheNational City Bank of New York. By 1868, it was one of the largest banks in the United States. The bank became the largest bank in New York City following thePanic of 1893. Two years later, in 1895, it had become the largest bank in the U.S.[6]
In 1904, the bank helped finance thePanama Canal. Two years later, in 1906, 11% of theU.S. federal government's bank balances were held by National City. National City at this time was the banker ofStandard Oil, and the Chicago banking factions accusedU.S. Secretary of the TreasuryL. M. Shaw of having too close of a relationship with National City and other Wall Street operators.[12] In 1907, Stillman, then the bank's chairman, intervened, along withJ. P. Morgan andGeorge Fisher Baker, in thePanic of 1907.
Between 1910 and 1911, theDepartment of State backed a consortium of American investors headed by Citibank to acquire control over theBanque Nationale de la République d'Haïti, which was the sole commercial bank ofHaiti and served as the Haitian government's treasury. Citibank then lobbied for theUnited States occupation of Haiti, which began in 1915. During the occupation, Citibank imposed a US$30 million loan on the Haitian government, which was described by communist[13]George Padmore as transforming Haiti into an "American slave colony".[14] Citibank would go on to acquire some of its largest gains in the 1920s due to debt payments from Haiti, according to later filings to theSenate Finance Committee.[15]
When theFederal Reserve Act allowed it,[16] National City Bank became the first U.S. national bank to open an overseas banking office when it opened a branch inBuenos Aires, Argentina, in 1914. Many of Citi's present international offices are older; offices in London, Shanghai,Calcutta, and elsewhere were opened in 1901 and 1902 by theInternational Banking Corporation (IBC), a company chartered to conduct banking business outside the U.S., which was forbidden to U.S. national banks. In 1918, IBC became a wholly owned subsidiary and was subsequently merged into the bank. The same year, the bank evacuated all of its employees fromMoscow andPetrograd as theRussian Civil War had begun, but also established a branch inPuerto Rico. By 1919, the bank had become the first U.S. bank to have $1 billion in assets.
As of March 9, 1921, there were four national banks in New York City operating branch offices:Chatham and Phenix National, theMechanics and Metals National, theIrving National, and National City Bank.[17]
Charles E. Mitchell, also called "Sunshine" Charlie Mitchell, was elected president in 1921. In 1929, he was made chairman, a position he held until 1933. Under Mitchell, the bank expanded rapidly and by 1930 had 100 branches in 23 countries outside the United States. The policies pursued by the bank under Mitchell's leadership are seen by many people as one of the prime causes of the stock market crash of 1929, which led ultimately to theGreat Depression.[18][19][20][21][22][23][24][25][26][27]
In 1933, thePecora Commission, aUnited States Senate committee, investigated Mitchell for his part in tens of millions of dollars in losses, excessive pay, and tax avoidance, later leading to his resignation.[28][29][30][31][32][33] U.S. SenatorCarter Glass said of him, "Mitchell, more than any 50 men, is responsible for thisstock crash."[34][35]
On December 24, 1927, its headquarters inBuenos Aires, Argentina, were blown up by theItalian anarchistSeverino Di Giovanni, in the frame of the international campaign supportingSacco and Vanzetti.[36]
In 1940 and 1941, branches in Germany and Japan closed. In 1945, the bank handled $5.6 billion in Treasury securities for War and Victory Loan drives for the U.S. government.
In 1952,James Stillman Rockefeller was elected president and then chairman in 1959, serving until 1967. Stillman was a direct descendant of theRockefeller family through theWilliam Rockefeller (the brother ofJohn D.) branch. In 1960, his second cousin,David Rockefeller, became president ofChase Manhattan Bank, National City's long-time New York rival for dominance in the banking industry in the United States.[37][38]
Following its merger with the First National Bank in 1955, the bank changed its name to The First National City Bank of New York, then shortened it to First National City Bank in 1962. It is also worth noting that the bank began recruiting atHarvard Business School in 1957, arranged the financing of the 1958 Hollywood film,South Pacific, and had its branches in Cubanationalized in 1959 by the newsocialist government, and has its firstAfrican-American director in 1969,Franklin A. Thomas.
The company organically entered the leasing and credit card sectors, and its introduction of US dollar-denominatedcertificates of deposit in London marked the first newnegotiable instrument in the market since 1888. Later to become part ofMasterCard, the bank introduced itsFirst National City Charge Service credit card—popularly known as the "Everything Card"—in 1967.
In 1967,Walter B. Wriston became chairman and chief executive officer of the bank.[39]
In the 1960s, the bank entered into the credit card business. In 1965, First National City Bank boughtCarte Blanche fromHilton Hotels. Three years later, under pressure from the U.S. government, the bank sold this division. By 1968, the company created its own credit card. The card, known as "The Everything Card", was promoted as a kind of East Coast version of theBankAmericard. By 1969, First National City Bank decided that the Everything Card was too costly to promote as an independent brand and joined Master Charge (nowMasterCard). Citibank unsuccessfully tried again from 1977 to 1987 to create a separate credit card brand, theChoice Card.
In 1967, First National City Bank reorganized as a one-bank holding company, First National City Corporation, or "Citicorp" for short. However, the bank had been nicknamed "Citibank" since the 1860s, when City Bank of New York adopted it as an eight-letter wire code address. "Citicorp" became the holding company's formal name in 1974, and in 1976, First National City Bank was renamed Citibank, N.A.[40] The name change also helped to avoid confusion inOhio withCleveland-basedNational City Corp., though the banks never had any significant overlapping areas except for Citi credit cards issued in National City territory. In addition, at the time of the name change to Citicorp, in 1968, National City of Ohio was mostly a Cleveland-area bank and had not gone on its acquisition spree that would occur in the 1990s and 2000s. Any possible name confusion had Citi not changed its name from National City eventually became completely moot whenPNC Financial Services acquired National City in 2008 during thesubprime mortgage crisis.
In 1987, the bank set aside $3 billion in reserves for loan losses in Brazil and otherdeveloping countries.[41] In 1990, the bank established a subsidiary in Poland. In 1994, it became the world's biggest card issuer.
Also in the 1980s, the bank launched the Citicard, which allowed customers to perform all transactions without apassbook.[42] Branches also hadterminals with simple one-line displays that allowed customers to get basic account information without abank teller.
John S. Reed was selected CEO in 1984, and Citi became a founding member of theCHAPSclearing house in London. Under his leadership, the next 14 years would see Citibank become the largest bank in the U.S., the largest issuer of credit cards and charge cards in the world, and expand its global reach to over 90 countries.
As the bank's expansion continued, the Narre Warren-Caroline Springs[dubious –discuss] credit card company was purchased in 1981. In 1981, Citibank chartered aSouth Dakota subsidiary to take advantage of new laws that raised the state's maximum permissibleinterest rate on loans to 25% (then the highest in the nation). In many other states, usury laws prevented banks from charging interest that aligned with the extremely high costs of lending money in the late 1970s and early 1980s, makingconsumer lending unprofitable. There is no current maximum interest rate or usury restriction under South Dakota law when a written agreement is formed.[43]
In 2005, Federated Department Stores, nowMacy's, Inc., sold its consumer credit portfolio to Citigroup, which reissued its cards under the name Department Stores National Bank (DSNB).[44][45]
As of 2013, Citibank employed 2,900 people inSioux Falls, South Dakota, and contributed to the state holding more bank assets than any other state.[46]
In 2013, Citibank purchased the credit card portfolio ofBest Buy from Capital One.[47][48]
On April 1, 2016, Citigroup became the exclusive issuer ofCostco's branded credit cards.[49][50]
The bank's private-label credit card division, Citi Retail Services, issues store-issued credit cards for such companies as:American Airlines,Best Buy,ConocoPhillips,Costco,ExxonMobil,The Home Depot,Sears,Shell Oil, andStaples Inc.
In the 1970s, Citibank was one of the first U.S. banks to introduceautomatic teller machines (ATMs), which gave customers 24-hour access to cash.
In 2002, Citigroup, the parent of Citibank, acquired Golden State Bancorp and itsCalifornia Federal Bank, which was one-third owned byRonald O. Perelman, for $5.8 billion.[51][52]
In 1999, Citibank was sued for improperly charging late fees on its credit cards.[53]
In August 2004, Citigroup entered the Texas market with the purchase of First American Bank ofBryan, Texas. The deal established the firm'sretail banking presence in Texas, giving Citibank over 100 branches, $3.5 billion in assets and approximately 120,000 customers in the state.[54]
In 2006, the bank entered the Philadelphia market, opening 23 branches in the metropolitan area. In 2013, Citibank closed these locations for "efficiency-driven" reasons.[55]
In 2006, the company announced a naming rights sponsorship deal for the new stadium ofNew York Mets,Citi Field, which opened in 2009. The deal reportedly required payments by Citi of $20 million per year for 20 years.[56]
As of September 2020, Citibank's US branches are located in the metropolitan areas of New York, Los Angeles, San Francisco, Sacramento, San Diego, Washington DC, Las Vegas, Miami, and Chicago. California is home to the majority of Citibank's US branches, with 292 branches located in the state.'
Citi announced it may return its retail banking presence to Dallas in 2022. Citibank will take more than 9,000 square feet of space in the Berkshire Court building at Preston and Northwest Highway. Construction is scheduled to start on the new office early next year, according to planning documents filed with the state. The new Citibank office is described as an "experience center" in the planning documents. The plans identify the operation as "retail bank/office space". Citibank doesn't have a major retail banking presence in the Dallas area. A spokesman in the bank's New York office would not give details about what is planned in the North Dallas location. "We'll decline to comment on this," said Citibank's Drew Benson in an email.
On April 11, 2007, Citigroup, the parent of Citibank, announced layoffs of 17,000 employees, or 8% of its workforce.[57]
On November 4, 2007,Charles Prince resigned as the chairman and chief executive of Citigroup, the parent of Citibank, following crisis meetings with the board in New York in the wake of billions of dollars in losses related tosubprime lending.[58] FormerUnited States Secretary of the TreasuryRobert Rubin took over as chairman, subsequently hiringVikram Pandit as chief executive.[59]
On November 5, 2007, several days afterMerrill Lynch announced that it too had been losing billions from the subprime mortgage crisis in the United States, Citi reported that it will lose between $8 billion and $11 billion in the fourth quarter of 2007, in addition to the $6.5 billion it lost in the third quarter of 2007.[60]
Effective November 30, 2007, Citibank sold its 17Puerto Rico branches, along with $1.0 billion in deposits, toBanco Popular.[61]
In January 2008, Citigroup reported a $10 billion loss in the fourth quarter of 2007, after an $18.1 billion write down.[62]
In March 2008, Citibank set up Mobile Money Ventures, a joint venture withSK Telecom, to developmobile apps for banking.[63] It sold the venture toIntuit in June 2011.[64]
In May 2008, the company closed an $87.5 millionleaseback transaction for branches in New York City.[65]
In July 2008,Citibank Privatkunden AG & Co. KGaA, the company's German division, was sold toCrédit Mutuel.[66] On February 22, 2010, it was renamed toTargobank.
In August 2008, after a three-year investigation by theCalifornia Attorney General, Citibank was ordered to repay the $14 million that was removed from 53,000 customers accounts over an 11-year period from 1992 to 2003, plus an additional $4 million in interest and penalties. The money was taken under an electronic "account sweeping program" where any positive balances from over-payments or double payments were removed without notice to the customers.[67]
As a result of the2008 financial crisis and huge losses in the value of itssubprime lending assets, Citigroup, the parent of Citibank, received abailout in the form of an investment from theU.S. Treasury.[68] On November 23, 2008, in addition to an initial investment of $25 billion, a further $20 billion was invested in the company along with guarantees for risky assets of $306 billion.[69] The guarantees were issued at a time markets were not confident Citi had enough liquidity to cover losses from those investments. Eventually, the Citi shares the Treasury took over in return for the guarantees it issued were booked as net profit for the treasury as Citi had enough liquidity and guarantees did not have to be used. By 2010, Citibank had repaid the loans from the Treasury in full, including interest, resulting in a net profit for the U.S. federal government.
On January 16, 2009, Citigroup announced that it was separatingCiti Holdings Inc., its non-core businesses such as brokerage, asset management, and local consumer finance and higher-risk assets, from Citicorp. The split was presented as allowing Citibank to concentrate on its core banking business.[70]
On October 19, 2011, Citigroup, the parent of Citibank, agreed to a $285 million civil fraud penalty after theU.S. Securities and Exchange Commission accused the company of betting against risky mortgage-related investments that it sold to its clients.[71][72][73]
In 2014, Citigroup announced it would exit retail banking in 11 markets, primarily in Europe and Central America.[74] In September 2014, it exited the Texas market with the sale of 41 branches toBB&T.[75] In September 2015, the bank announced that it would close its 17 branches in Massachusetts and end sponsorship of a theater in Boston.[76]
In 2015, the bank was ordered to pay $770 million in relief to borrowers for illegal credit card practices. TheConsumer Financial Protection Bureau said that about 7 million customer accounts were affected by Citibank's "deceptive marketing" practices, which included misrepresenting costs and fees and charging customers for services they did not receive.[77]
On March 1, 2017, an article inThe Economic Times of India stated that Citibank may close its 44 branches in India, as digital transactions made them less necessary. The articles wrote that Citibank was "India's most profitable foreign lender".[78]
On March 20, 2017,The Guardian reported that hundreds of banks had helped launderFSB-related funds out of Russia, as uncovered by an investigation namedRussian Laundromat. Citibank was listed among the American banks that were named as having handled the laundered funds, with banks in the US processing around $63.7 million between 2010 and 2014. Citibank was listed as having processed $37 million of that amount, with others includingBank of America, which processed $14 million, as the bank "handled $113.1 million" in Laundromat cash.[79]
In March 2018, Citibank announced a new firearms policy, placing restrictions on financial transactions in the U.S. firearm industry.[80][81]
In April 2021, Citibank announced it would exit its consumer banking operations in 13 markets, includingAustralia,Bahrain,China,India,Indonesia,South Korea,Malaysia, thePhilippines,Poland,Russia,Taiwan,Thailand andVietnam.[82]
In January 2022, Citi further announced its plan to exit consumer banking inMexico (also known as Citibanamex), as well as small-business and middle-market banking operations.[83]
In September 2022, Citi announced plans to wind down retail banking in the UK.[84]
In January 2024, Citi reported a $1.8 billion loss in the fourth quarter of 2023 and announced plans to cut 20,000 jobs, roughly 8% of its workforce.[85]
At the bank's 2024 investor day, Citi highlighted its Services division, which produces income from "financial pipes".[86]
In March 2025, Citi paid out £215,000 in a discrimination settlement for a former employee after she lost out on an expected promotion when she returned from maternity leave.[87]
| Market | Acquirer/status | Announcement date | Consideration (US$) | Ref. |
|---|---|---|---|---|
| Australia | National Australia Bank | 2021-08-09 | 882 million | [88][89] |
| Indonesia, Malaysia, Thailand and Vietnam | United Overseas Bank | 2022-01-13 | 3.36 billion | [90][91] |
| South Korea | Winding down "in phases" | 2021-10-25 | N/A | [92] |
| Philippines | UnionBank of the Philippines | 2021-12-23 | 908 million | [93][94][better source needed] |
| Taiwan | DBS Bank | 2022-01-28 | 706.6 million | [95] |
| India | Axis Bank | 2022-03-30 | 1.6 billion | |
| Bahrain | Ahli United Bank | 2022-04-06 | Unknown | [96] |
Since the bank's founding in 1812, it has been led by a President, withSamuel Osgood being elected as the first President. In 1909,James Stillman became the first chairman of the company.
In 1998, theGeneral Accounting Office issued a report critical of Citibank's handling of funds received fromRaul Salinas de Gortari, brother ofCarlos Salinas, the former president of Mexico. The report, titled "Raul Salinas, Citibank and Alleged Money Laundering", indicated that Citibank facilitated the transfer of millions of dollars through complex financial transactions that hid the funds' paper trail. The report indicated that Citibank took on Salinas as a client without making a thorough inquiry as to how he made his fortune, an omission that a Citibank official called a violation of the bank's "know your customer" policy.[97][98]
Citibank has been punished by theJapanese Financial Services Agency twice (2004 and 2009) for aiding and abettingmoney laundering byyakuza members; there was no punishment from the U.S. side. In 2004–2006,Immigration Customs Enforcement (ICE) seized close to $1 million worth of assets in the United States owned bySusumu Kajiyama, the so-called emperor ofloan sharks, and aYamaguchi-gumi Goryokai member.[99]
"In 2004, Citibank (Japan) lost their private banking license because they were allowing yakuza to do many complex transactions,"Jake Adelstein, author of "Tokyo Vice" and an expert on Japan's mafia – known as the yakuza – toldCNN. "They got 'spanked' in 2009 for failing to update their databases and allowing yakuza to do business with them again."[100]
Citibank is one of the lead lenders to the developers of theDakota Access Pipeline project inNorth Dakota, a 1,172-mile-long (1,886 km)oil pipeline project.[101] The pipeline has been controversial regarding its potential environmental impacts and impacts toSiouan sacred lands and water supply.[101][102] According to a statement by Hugh MacMillan, a senior researcher on water, energy and climate issues, Citibank has been "running the books on this project, and that's the bank that beat the bushes and got other banks to join in."[103]
On December 13, 2016, students ofColumbia University protested outside of the Citibank location on Broadway and 112th Street, by holding cardboard signs, chanting and passing flyers. Earlier that year, the university replaced the on-campus Citibank ATMs with ATMs fromSantander Bank, a bank that has no ties to the Dakota Access Pipeline.[104]
Preceded by other banks involved in theLibor Scandal, Citibank in June 2018 reached a settlement with 42 U.S. states to pay a $100 million fine due to their manipulation of theLondon Inter-bank Offered Rate.[105][106] Libor index is widely used as a reference rate for many financial instruments both in financial and commercial fields.
Citibank sponsorsCiti Field, home of theNew York Mets baseball club,[56] as well as theWashington Open tennis championship.[107]
Citibank became the major sponsor of theNorth Sydney Bears for the1992 NSWRL season[108]
The firm became a sponsor of the Australian Rugby Union team in 2001 for a three-year deal,[109] and a major sponsor of theSydney Swans in 2005, who play in theAustralian Football League.[110]
In the late 1970s, First National City was heavily involved in Indy Car racing, sponsoring major drivers like Johnny Rutherford[111] and Al Unser, Sr. Unser won the1978 Indianapolis 500 in First National City Travelers Checks livery.
In Formula 1 First National City was the sponsor of team Tyrrell in 1977 and 1978, with the First National City Travelers Checks livery also. They're currently sponsoringFernando Alonso in Formula 1
Citibank is the main sponsor of New York City's bike-share schemeCiti Bike since its launch in 2013.[112]
{{cite web}}: CS1 maint: multiple names: authors list (link){{cite press release}}:|author= has generic name (help){{cite press release}}:|author= has generic name (help)Citibank will pay a huge fine for manipulating an important interest rate.
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