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  1. #1

    Default Citi Bank & Citigroup "Citi's Yard Sale"

    BY RANDALL SMITH

    It is probably the biggest garage sale ever: credit cards, mortgages, brokerage operations, a door-to-door insurance business, even a ski lodge that Citigroup Inc. amassed as it tried to build a financial supermarket to the world.

    Now that the dream is gone, the New York company is working hard to get rid of assets it no longer wants, still haunting Citigroup more than two years after the financial crisis hit. Fourteen months into the sales process, though, it is clear executives are in for a long, hard slog.

    As published in the Wall Street Journal on March 25, 2010


  2. #2

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by Wanderer View Post
    BY RANDALL SMITH

    It is probably the biggest garage sale ever: credit cards, mortgages, brokerage operations, a door-to-door insurance business, even a ski lodge that Citigroup Inc. amassed as it tried to build a financial supermarket to the world.

    Now that the dream is gone, the New York company is working hard to get rid of assets it no longer wants, still haunting Citigroup more than two years after the financial crisis hit. Fourteen months into the sales process, though, it is clear executives are in for a long, hard slog.

    As published in the Wall Street Journal on March 25, 2010

    They should have never merged with Travelers. What a nightmare. They used to be such a great company as Citicorp.

  3. #3

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Colo - try this... I obtained a checking account from Citicorp in 1979 when they first rolled out their attempt at national banking issued on the new Citibank South Dakota (to get around usuary laws in most states). Frankly, it was a hassle as everything was by mail. Slow and hard to deal with... no brick and motar or internet. Closed it soon thereafter. They stopped it for a period of time and I forgot about them. Got my first Gold Visa from Citibank in 1973 when they turned me down so I wrote the bank president where they determined I was their kind of people (back then $5,000 CL was the magic for a gold card with the frills - not much by our standrads today). Oh yes the big boy bank.

  4. #4

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by Wanderer View Post
    Colo - try this... I obtained a checking account from Citicorp in 1979 when they first rolled out their attempt at national banking issued on the new Citibank South Dakota (to get around usuary laws in most states). Frankly, it was a hassle as everything was by mail. Slow and hard to deal with... no brick and motar or internet. Closed it soon thereafter. They stopped it for a period of time and I forgot about them. Got my first Gold Visa from Citibank in 1973 when they turned me down so I wrote the bank president where they determined I was their kind of people (back then $5,000 CL was the magic for a gold card with the frills - not much by our standrads today). Oh yes the big boy bank.
    I just always thought they were cool. It has been sad to see them pretty much fall flat on their faces. I still wish they would go back to Citicorp with that cool old logo with the star at the end. Oh well, things change I guess.

  5. #5

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    You know Travelers was a good company with the red umbrella and I always liked them as a stand alone. Citi took a big kick from their sub-prime Citi Financial. It is biting them big time now. The article didn't mention that one.

  6. #6

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Today while passing Dallas Cowboys stadium(huge) i noticed a Citibank banking center nearby and thought that couldn't be right but there it was because i was born and raised in the DFW area and I've never seen anything of Citibank around here but i guess they are making there presence here slowly...it's great thought because it seems like there is a Chase and Boa on every corner here.

  7. #7

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by eugene66 View Post
    Today while passing Dallas Cowboys stadium(huge) i noticed a Citibank banking center nearby and thought that couldn't be right but there it was because i was born and raised in the DFW area and I've never seen anything of Citibank around here but i guess they are making there presence here slowly...it's great thought because it seems like there is a Chase and Boa on every corner here.
    Citibank recently entered into the DFW area. They also have a lot of offices down there for mortgages and car loans (Citifinancial). We have a ton of Chase here in Denver but no BofA. I have no idea why BofA has not entered into our market especially with the hundreds of thousands of Californians that have moved here.

  8. #8

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Citi Bank & Group's Yard Sale just keeps on rolling (the reconstruct of the "big boy" banks is in the process) :

    By MATTHIAS RIEKER Wall Street Journal 06-01-10

    NEW YORK— Citigroup Inc. is positioning its CitiFinancial consumer lending unit to grow—and thus to be sold more easily.

    Citi said it plans to split its mainly subprime consumer-lending unit in the U.S. into two segments, and to rename it later this year.

    One segment will hold the branches that make most of its loans. The other segment will service loans in markets where demand may remain low and certain loans whose borrowers may need assistance, including loan modification or restructuring.

    The restructuring of CitiFinancial is designed to help Citi to offload the unit, one of the largest of the businesses Citi has marked for divestiture. The segment holding most of the branches will be CitiFinancial's growth driver and, Citi hopes, illustrate how attractive CitiFinancial can be to its future owner. The loan-servicing segment, with 35% of CitiFinancial's customers and 182 of its 1,833 U.S. branches, might not find investors as interested, said Mary McDowell, the Chief Executive of CitiFinancial North America.

    CitFinancial will close 320 branches.

    When a sale of CitiFinancial will occur is unclear. "We've had a lot of interest," Ms. McDowell said. She wouldn't elaborate which potential buyers expressed interest.

    "We looked into the future and felt if we continue" to simply close branches to adjust for falling loan demand "you wouldn't provide" investors with a clear picture about CitiFinancial's future, Ms. McDowell said.

    How will banking look in the future ?

  9. #9

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Citigroup announced today they would close 330 branches in their consumer finance organization (Citi Financial) as part of their ongoing bank restructuring. The name CitiFinancial would go away and a new name would be forth coming.

  10. #10

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    I was reading about the history of Citi and boy did they ever try to create a conglomerate business model in the 90's that got out of hand in recent years.

  11. #11

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by Wanderer View Post
    Citigroup announced today they would close 330 branches in their consumer finance organization (Citi Financial) as part of their ongoing bank restructuring. The name CitiFinancial would go away and a new name would be forth coming.
    They got way too big with that illfated Travelers merger. They had said last year that they were going to split into a "good" bank and a "bad" bank with the bad assets. The good back was to again be called Citicorp. Very interesting....

  12. #12

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by eugene66 View Post
    I was reading about the history of Citi and boy did they ever try to create a conglomerate business model in the 90's that got out of hand in recent years.
    Eugene, were you the one that was approved for a Citibank Dividend MasterCard recently? Is yours a World MasterCard or a Platinum Select MasterCard?

  13. #13

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by ColoNative View Post
    Eugene, were you the one that was approved for a Citibank Dividend MasterCard recently? Is yours a World MasterCard or a Platinum Select MasterCard?
    Yes... It's still a Dividend Platinum Select card and I've been reading recently that people with the card is being converted to a World Mastercard or World Elite Mastercard with rotating rewards like Discover.if or when i get the letter i will declined the change because its being reported as a signature line card i believe.

  14. #14

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    Quote Originally Posted by eugene66 View Post
    Yes... It's still a Dividend Platinum Select card and I've been reading recently that people with the card is being converted to a World Mastercard or World Elite Mastercard with rotating rewards like Discover.if or when i get the letter i will declined the change because its being reported as a signature line card i believe.
    Yup, last weekend I received a letter stating that the 2% on gas/groceries/drug stores/utilities is going away but they will have rotating extra rewards. July through September it is restaurants and car rentals.....well I didn't read towards the bottom of the letter. Then my friend (that I referred the card to) told me that the cards are being upgraded to World. Looked at my letter and I'll be darned, she was right. Yeah, the World doesn't report a limit, but unlike other creditors, Citibank doesn't even report the high balance-they report a zero.
    I called today to see if I could opt out of the "upgrade." Nope, I was told that I could not participate in the Dividend program without being at the World level. I asked if they could change the MasterCard into a Visa Dividend or an Amex Dividend (the Visa is actively promoted to college students and they used to market the Amex version a few years ago). Citibank used to be really good about changing products at the drop of a dime and one time they asked me if I wanted my AT&T MasterCard changed to a Visa. After being transfered to a rep in the US (because I could not understand the rep that I got from India) he told me that due to the CARD Act they are no longer able to change card types.
    I know why they are doing it, the higher level the card, the more money Citibank gets from the merchants that I use the card at. This helps pay for the reward. The paranoid part of me thinks that they are just trying to get people to close the cards because the program is costing them too much. Credit unions, credit unions!!!

  15. #15

    Default Re: Citi Bank & Citigroup "Citi's Yard Sale"

    I do not know if this is true or not but I've read that people asked for a supervisor and was approved for the op-out of the conversion.

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