citigroup inc (C) Key Developments
Labaton Sucharow Files Nationwide Class Action Alleging Insidious Treasury Auction Manipulation Against Goldman Sachs, Citigroup, Credit Suisse, Deutsche Bank, Meryl Lynch, and JPMorgan
Jul 23 15
Labaton Sucharow LLP filed the nationwide class action alleging a conspiracy by prominent financial institutions, including Goldman Sachs, Citigroup, Credit Suisse, Deutsche Bank, Meryl Lynch, and JPMorgan, among others, to manipulate auctions for U.S. treasury bills, notes, and bonds. The plaintiff claims that the defendants employed a multi-pronged scheme to effectively sell high and buy low, colluding to induce investors to pay high prices for debt securities purchased from defendants in the pre-auction market, called the when issued market, and to depress the price of the securities that the defendants themselves bought at auction to cover these sales, pocketing the difference. According to the complaint, the defendants manipulated the treasury securities market by using chat rooms, instant messaging, and other methods to exchange confidential customer information and coordinate trading strategies.
Citigroup to Close Banamex USA Operations
Jul 23 15
Citigroup is set to close Banamex USA operations and has agreed to pay a fine of $140 million to regulators who alleged that the bank had not done enough to correct weaknesses found in its 2012 anti-money laundering programs. The penalty, which has been levied by the Federal Deposit Insurance, includes $40 million in civil penalties to be paid to California's Department of Business Oversight. The US-based banking major in a statement said that it would liquidate Banamex USA, as well as shut down its offices in Houston and San Antonio in October 2015. The bank announced its plans to shut down the unit after concluding that it ‘has not been able to operate to the scale necessary to generate consistent quality earnings.’ Banamex USA operates with three branches in California and Texas and about 300 full-time employees, managing assets of over $500 million and a deposit base of nearly $460 million.
Citigroup to Pay $140 Million in Fines for Inadequate Programs to Combat Money Laundering
Jul 22 15
Citigroup announced that it will pay $140 million in fines for inadequate programs to combat money laundering. The California Department of Business Oversight announced that the fines were needed because Banamex USA continued to engage in new violations of federal bank secrecy and money laundering rules. Those failings flouted requirements under a 2012 consent order between Banamex USA and the Federal Deposit Insurance Corporation and the California agency. Banamex agreed three years ago to correct numerous weaknesses in its This new agreement holds Banamex appropriately accountable for it's continued violations.
Citigroup to Refund $700 Million to Customers, Pay $70 Million in Fines, for Illegal Card Practices
Jul 21 15
Nine million credit card customers will receive refund checks from Citigroup after U.S. regulators forced the bank to repay $700 million and fined it $70 million for illegal and deceptive practices. The order, coming from the Consumer Financial Protection Bureau, is the latest multimillion dollar settlement against the credit card issuers for their role in selling "add-on" products to customers, such as credit score monitoring or "rush" processing of payments. Under an agreement with the CFPB, Citi will issue refunds to 8.8 million affected consumers who paid for these types of add-on products, and will pay two separate $35 million fines to the CFPB and to the federal bank regulator the Office of the Comptroller of the Currency.
Citigroup Inc. Reports Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015
Jul 16 15
Citigroup Inc. reported consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported total revenues of $19,470 million compared to $19,425 million a year ago. Adjusted revenues were $19,158 million compared to $19,458 million a year ago. Income from continuing operations before taxes was $6,894 million compared to $2,174 million a year ago. Income from continuing operations was $4,858 million compared to $253 million a year ago. Net income was $4,846 million or $1.51 per diluted share compared to $181 million or $0.03 per diluted share a year ago. Adjusted net income was $4,650 million compared to $3,927 million a year ago. Return on average common equity was 9.1% compared to 0.2% a year ago. Book value per share was $68.27 compared to $66.64 a year ago. Tangible book value per share was $59.18 compared to $56.78 a year ago. Adjusted ROA was 1.01% compared to 0.83% a year ago. Return on average assets was 1.06% compared to 0.04% a year ago.
For the six months, the company reported total revenues of $39,206 million compared to $39,631 million a year ago. Income from continuing operations before taxes was $13,831 million compared to $8,257 million a year ago. Income from continuing operations was $9,675 million compared to $4,205 million a year ago. Net income was $9,616 million or $3.02 per diluted share compared to $3,837 million or $1.26 per diluted share a year ago. Return on average assets was 1.05% compared to 0.44% a year ago. Return on average common equity was 9.1% compared to 0.2% a year ago.