Citi Group News: A Year of Turmoil and Transformation

Citi Group's financial struggles in 2020 were a major concern for investors and regulators alike. The bank's stock price plummeted by over 50% in the first quarter, wiping out billions of dollars in shareholder value.

Citi Group's struggles were largely due to the COVID-19 pandemic, which led to a significant decline in consumer spending and business activity. This had a ripple effect on the bank's loan portfolio, leading to a rise in bad debts.

In response to the crisis, Citi Group's CEO, Jane Fraser, implemented a series of cost-cutting measures, including reducing the bank's workforce by 9,000 employees. This move was aimed at reducing the bank's expenses and improving its profitability.

Citi Group has undergone a significant restructuring, simplifying its operating model and reducing its headcount from 240,000 to 180,000 by 2026.

The bank has introduced five business lines: banking, services, markets, US personal banking and wealth, with their heads reporting directly to Jane Fraser.

Revenue-sharing has been rolled out within the banking division, driving internal conversations about capital allocation and helping to communicate the bank's story to the outside world.

Citi aims to run the bank like an operator, not a holding company, eliminating unnecessary layers and enabling faster decision-making.

The bank has set medium-term targets for each division, including a ROTCE of 20% for wealth and mid-teens for US personal banking.

Citi has also laid off 430 employees in New York across different divisions, a move that's part of the broader restructuring effort.

The bank invested over $12 billion in technology last year, a 9% increase over 2022, with more than half of the spending going into modernization initiatives.

Citi is currently upgrading its data architecture, automating manual controls and processes, and consolidating fragmented tech platforms to lay the groundwork for generative AI.

The bank has signaled its eagerness to adopt generative AI by backing a Fintech Open Source Foundation initiative aimed at defining a governance framework for the safe sourcing, development, and deployment of generative AI-based solutions in the finance industry.

Citi has also made key hires, including Andy Sieg from Merrill Lynch to run wealth and Vis Raghavan from JPMorgan to run banking, as part of its effort to simplify and modernize its operations.

Citigroup has been in the spotlight for some disturbing controversies and scandals. The bank has been probed by the feds over its ties to a sanctioned Russian billionaire, Kerimov, who was sanctioned in 2014 and 2018 for Russia's actions in Syria and Ukraine.

The bank's workplace culture has also been under fire, with allegations of bullying, harassment, and even in-office cocaine use. A senior banker was investigated for workplace bullying claims, and a broker sued the bank alleging years of sexual harassment.

It's alarming to think that a bank like Citigroup, once considered a model financial services firm, has been plagued by such issues.

Morgan Stanley has joined the growing list of banks leaving the UN-backed climate alliance.

This move follows similar announcements from Citigroup and Bank of America earlier in the week.

The exodus from the alliance is not a new trend, as Goldman Sachs and Wells Fargo made the same announcement in December.

Morgan Stanley's decision to leave the alliance is part of a larger shift in the financial industry's stance on climate change.

The exact reasons behind Morgan Stanley's departure from the alliance are not specified in the article.

Goldman Sachs, Citi, Bank of America, and Wells Fargo have already made their exit from the UN-backed climate alliance.

Morgan Stanley's decision to leave the alliance does not come as a surprise, given the growing trend of banks reevaluating their involvement in climate initiatives.

Citigroup is being probed by the feds over its ties to a sanctioned Russian billionaire.

Kerimov was sanctioned by the US in 2014 and 2018 in response to Russia's actions in Syria and Ukraine.

A broker has filed a lawsuit against Citigroup, alleging she was subjected to years of sexual harassment. This is just one of many controversies surrounding the Wall Street giant.

The lawsuit is not an isolated incident, as Citigroup has faced repeated criticism about its working culture and treatment of female employees. This is a serious issue that needs to be addressed.

Video obtained by The Post shows a Citigroup employee yelling at protesters trying to block employees from the office, raising further concerns about the company's culture. This behavior is unacceptable and needs to be investigated.

Citigroup's stock-trading unit has been accused of creating a toxic work environment, with reports of harassment and in-office cocaine use. This is a disturbing trend that needs to be stopped.

The company is also under investigation for workplace bullying claims, with one incident involving a senior banker shouting insults at his team. This kind of behavior is not only unacceptable but also unprofessional.

Citi Group has been in the news lately for some significant changes. The bank increased CEO Jane Fraser's compensation by about 6% to $26 million for 2023.

Citigroup is not just giving its top executives a raise, though. The bank will be laying off 430 employees across different divisions in New York. This news was disclosed in filings with the State Department of Labor on Monday.

These layoffs are a part of Citi Group's restructuring efforts, and it's clear that the bank is making some tough decisions.