What does this annotation do?
Japan Crisis
The U.S. Treasury Department approved an initial sale of 1.5 billion shares of Citigroup common stock in a step toward reducing its 27% stake of the firm. Morgan Stanley was hired to manage the Treasury's holdings of Citi. MS will earn 0.3 cents for every share it sells electronically and 1.75 cents for every share sold through other methods, a steep discount form the usual 1 to 2 cents normally charged by brokers per share sold electronically and 3 to 4 cents sold through other means.
Citigroup Inc. announced the $320.4 million initial public offering (IPO) of Primerica, Inc. In the offering, approximately 21.4 million shares of Primerica common stock were sold at $15 per share.
Government begings slow sale of common shares in Citibank slowly to not rock the boat. 300% profit for Uncle Sam. By Chris Bayless
The fight really heats up. Can Citi recover? Would ousting Pandit help? Does it matter in the long run?
The US Treasury Department demanded that Citi and a series of other large banks cut 85% of the $6.9B of Chrysler's debt. Citi and JPMorgan refused and made a counteroffer to lower the debt by 35% in exchange for a 40% minority stake.
Treasury Dept announces a detailed plan to fix liquidity and toxic assets in the financial systems.
Citi said it will be increasing the number of common shares to conduct a reverse split to convert preferred stocks into common stocks at a price of $3.25 per share. The reverse split will not change the market value of the company but will increase the price per stock.
Citigroup (C, Fortune 500) Chairman Richard Parsons told Reuters late Thursday that the financial services company won't need any more government help and that it will remain publicly traded. The stock plummeted in recent weeks on fears that it would have to be fully taken over by the government, which said last week it would lift its stake in Citigroup to as much as 36%.
The Wall Street Journal reports that Citi is in talks with U.S. government regulators about a possible conversion of a number of the government-purchased preferred Citigroup shares to common shares.
Bloomberg reports that Citi will use $36.5 billion of the U.S. government's $45 billion bailout injection lending to consumers and companies in addition to funding mortgages.
Richard Parsons (Citigroup's lead director and ex-CEO of Time Warner) will follow Sir Win Bischoff as Citigroup's board chair.
The 1 cent dividend to be paid to all Citigroup common stocks holders on Febrary 27 have concerned ratings agencies.
The Wall Street Journal reports that, despite last-week rumors that Citigroup was going to hold the company, they have now decided to move forward with the sale of their Japanese retail brokerage Nikkio Cordial Securities.
Citigroup will sell 51% of its Smith Barney shares to Morgan Stanley, and will annonce earnings on Friday (earlier than the original Jan. 22 date).
BUY
On Thursday, October 2, Wells Fargo offered Wachovia a counter-offer, which would pay $15.1 billion for the entire company. In light of this new offer, Wachovia's board voted to accept it, shunning its previous agreement with Citi. Citi's CEO Vikram Pandit has promised to challenge the deal, fighting to keep its purchase of Wachovia's banking operations alive.
On November 24, 2008 Citigroup received a $20 Billion government bailout. Terms of the bailout including the limitation of Citi's common-stock dividends and government control of employee compensation.
According to a report by Zawya Dow Jones, Saudi Arabian investor Prince Alwaleed bin Talal bin Abdulaziz Al Saud said on 11/20/2008 that he will increase his holdings in Citigroup Inc. to 5%.
CEO Vikram Pandit told that 53,000 jobs would be cut by the end of the first quarter of 2009
CEO Vikram Pandit told that 53,000 jobs would be cut by the end of the first quarter of 2009.
On October 16, 2008, Citigroup announced a net loss for the third quarter of $2.8bn, mainly due to higher write-downs on fixed income assets and higher credit loss provisions. Revenue for the quarter of $16.7bn was down 23% from last year.
The acquisition would give Citigroup the third largest banking network in the US, behind JP Morgan and Bank of America. It also gives the company 9.8 percent share of total bank deposits in the US. Citigroup plans to raise $10 billion, and announced that it would cut dividend in half.
Financial shares tumble on news of Lehman bankruptcy.
As part of a settlement with state and federal regulators, Citi announced that it will buy back about $7.5 billion of its retail clients' auction-rate securities. It has been claimed that Citi deliberately mislead customers by saying that the securities were safer than they were, leading to large losses for clients. This settlement is meant to compensate clients for those losses.
On July 18, 2008, Citigroup announced its second-quarter results, which included a net loss of $2.5 billion on $7.2 billion of write downs. Despite this, analysts had been expecting a loss of about $3.67 billion, sending shares of Citi up about 10% during the day.
A Goldman Sachs analyst cut all US brokers ratings and strongly advised people to sell shares of Citigroup and Merrill Lynch. The analyst stated that Citi is facing multiple problems including asset write downs of $9.8 billion, higher loss provisions for consumer credit, and the potential for additional capital raises, dividend cuts, or asset sales.
Citigroup Inc. said Friday it is closing 32 offices and 540 ATMs in Japan as part of its restructuring plans for its Japanese consumer finance division, CFJ K.K. As it previously announced, Citi is revamping its Japanese operations as it integrates the operations of brokerage firm Nikko Cordial Corp., which it acquired in 2007. The closures are part of a broader plan that combines the management of Citi's banking, securities and related business, including 31 retail banking branches and 110 retail securities branches.
Citigroup announced that it was planing to close an underperforming hedge fund, Old Lane Partners, which was co-founded by Citi's CEO Vikram Pandit. Citi will buy what remains of the fund's assets as part of the closing.
10-K Annual Report: Revenues of $81.7 billion decreased 9% from 2006, primarily driven by significantly lower revenues in CMB due to write-downs related to subprime CDOs and leveraged lending. Revenues outside of CMB grew 14%. International operations recorded revenue growth of 15% in 2007, including a 28% increase in International Consumer and a $1.8 billion increase in International GWM, partially offset by a 9% decrease in International CMB.
On February 4th, JP Morgan Chase, Citigroup, and Morgan Stanley stated that they would put into effect a set of "Carbon Principles" by which they would give investment priority to clean energy groups, and force any company planning to build coal-powered plants to show how they would deal with the carbon dioxide pollution in order to get investment money.
On Tuesday, January 15, Citigroup announced its fourth quarter results for 2007. Citi reported a loss of $9.83 billion for the quarter on write-downs of $18 billion. Also, Citi said that it planned to raise $14.5 billion in capital through the sale of convertible preferred securities and that it would cut its dividend by 41%.
Citi names Pandit CEO and Bischoff Chairman
On Monday, November 19, Goldman Sachs analyst William Tanona downgraded Citi's stock from "neutral" to "sell", predicting write-offs of $15 billion over the next two quarters. According to Tanona, worsening conditions in the U.S. housing market could force Citi to write-down the values of many of its holdings of CDOs and subprime-backed securities. Citi's stock price fell 5.9% in intra-day trading.
In the wake of Citi's announcement of more potential write-downs, the company's CEO, Charles Prince is stepping down.
Credit Suisse and CIBC World Markets downgraded the largest U.S. bank, with CIBC citing concern Citi might have to cut its dividend. CIBC's lowered its rating of Citi to "Sector Underperformer" from "Sector Performer", raising concerns about its exposure to turbulent market conditions.
After the over $6bn in write-downs included in Citi's 3Q earnings report, it looked like the worst might have passed. On November 1, however, Citi announced that it might write down as much as $11 billion more as investments in certain types of debt continue to fall in value. This sent stock prices of financial firms around the world down as fears about continued losses from the credit market increased.
Citi released its earnings for the third quarter of 2007 on October 15, which showed a 57% drop in net income for the quarter. Over the course of the week, earnings reports from other financial services firms, including fellow banking giant Bank of America, further raised apprehensions about the finance sector in general, which put additional downward pressure on Citi's stock price.
On October 15, a consortium of U.S. banks, including Bank of America, Citibank, and JP Morgan Chase, announced its plan to create an $80 billion fund to help maintain liquidity in the credit markets. The fund will buy assets from structured investment vehicles, or SIVs, which invest in short-term commerical debt and asset-backed securities. Though it could help stabilize the debt market, the establishment of such a fund signaled the severity of the credit crunch, causing further drops in investor confidence and stock prices.
After writing down $5.9B in subprime losses Citi announces a major reorganization in which it merges its alternative investment unit with its investment banking division. At the same time Deutsche Bank downgraded the company's stock.
The acquisition of Nikko Cordial will be crucial as Japan continues its recovery; in March 2007, the bank was reported to hold 2.02 trillion in assets, making it the largest company according to the Fortune 2000.
Citi removes 15,000 from the Information Technology and back-office departments, making way for acquisitions in high-growth oriented regions.
