By Citi April 19, 2010 03:50 PMEarlier this morning, Citi released its earnings report for the first quarter of 2010. Chief Financial Officer John Gerspach filmed the following message discussing the report.
For more information and the full earnings report, visit the Investor Relations section of Citigroup's website.
By Citi April 16, 2010 10:39 AM
Californians are resilient -- you pretty much have to be if you live on a fault line. And when it comes to our personal finances, a new survey reveals that Californians are bouncing back -- despite their pessimism about the state's economic future.
The latest Citi California Pulse™ survey found that while 69 percent of Californians say they see few signs of improvement in the state's economy, optimism about their own economic futures is on the rise. Of the 1,201 Californians surveyed, 67 percent believe their personal financial situation will improve over the next twelve months, and 54 percent expressed optimism about potential job opportunities during the same period.
By Citi April 15, 2010 05:27 PM
For many borrowers, the challenges of financial hardship become a complex equation. They are often overextended and in homes they can no longer afford. In February, we developed an initiative that helps them avoid foreclosure, the Citi Foreclosure Alternative Program, representing an opportunity for customers to stay in their homes for up to six months, rent-free.
Under the terms of the program, which is being run as a pilot in six states, borrowers nearing foreclosure can cease mortgage payments and remain in their home in exchange for the deed to their property. By assigning their deed to us, they avoid foreclosure and are given additional time and financial relocation assistance to make plans for their future.
By Sanjiv Das, President and CEO, CitiMortgage, Inc. April 14, 2010 05:59 PM
(Excerpts from April 13, 2010 testimony before the House Financial Services Committee)
CitiMortgage has a long history of helping homeowners. We have put considerable resources toward helping our customers who are facing financial challenges remain in their homes. Since 2007, we have helped more than 825,000 families in their efforts to avoid foreclosure. In the fourth quarter of 2009, we were able to help families in their efforts to avoid foreclosure by a ratio of 15 to 1.
Our goal is to work with our customers to find the most affordable solution, and to assist those who are in need. At Citi, we have addressed affordability with programs that go beyond the Administration's Home Affordable Modification Program (HAMP). Our programs address core issues which borrowers face such as unemployment, imminent risk of default and the need for alternatives to foreclosure for those not able to afford owning a home.
By Citi April 14, 2010 10:49 AM
When the U.S. Congress passed "The Health Care and Education Reconciliation Act of 2010" on March 26, it eliminated the Federal Family Education Loan (FFEL) Program. With the U.S. Department of Education moving to a model of direct student lending via the Federal Direct Loan Program, banks and other financial institutions will no longer have a role in federal student loan originations beginning July 1, 2010.
Throughout the legislative process, Citi, through its subsidiary, The Student Loan Corporation (SLC), strongly advocated maintaining choice and competition in federal student lending. Regardless of this new legislation, SLC remains committed to private student loans.
By Citi April 13, 2010 03:30 PM
With April marking Financial Literacy Month, there is a great deal of public attention on financial education and its potential as a tool to improve the economy. At a Citi-sponsored event last week organized by The Greater Washington Jump$tart Coalition, "Financial Education and Washington," participants framed the issue and highlighted financial literacy initiatives directed at students.
In opening remarks, Eric Bell, an assistant vice president at Citi Private Bank who is the volunteer president of the DC-area coalition, noted a 2008 Jump$tart Coalition survey finding that financial literacy of high school students had fallen to its lowest level ever. He also outlined a vision for personal finance to be covered in every student's education. "A few decades ago, credit was extended only to those who could prove their ability to repay. Today, however, both college graduates and high school dropouts enter their adult lives with crippling student loans and credit card debt, frequently without a job in place to provide the income they will need to repay it," he said. "If young people are not prepared to make financial decisions wisely, substantial negative consequences may result that we will ultimately face as a nation."
By Jonathan Clements, Citi's Director of Financial Education April 12, 2010 01:07 PM
If things are so good, why do we feel so bad? A new nationwide survey released this week by Citi, and conducted by Hart Research Associates, found that 80 percent of Americans rate the economy as fair or poor and 59 percent believe the economy still hasn't hit bottom. Moreover, some 33 percent of Americans say they are worse off financially than they were a year ago and another 52 percent say their financial condition is about the same. We are, it seems, mired in an economic winter.
This may be a little puzzling, because there are plenty of signs of spring. U.S. economic growth turned positive in 2009's third quarter. March's unemployment rate was 9.7 percent, down from 10.1 percent in October 2009. The real estate market appears to be stabilizing. The Standard & Poor's 500-stock index is up some 75 percent since the March 2009 bear market low.
April 12, 2010 10:37 AM
Bank Technology News just gave Citi top honors in its first ranking of "America's Greenest Banks." It was exciting news to the teams we have around the world working to reduce Citi's impact on the earth.
The award highlighted the accomplishments of Citi's Sustainable Operations & Technology program, which includes dozens of initiatives aimed at shrinking our environmental footprint and controlling costs. In just one example, we updated computer hardware across the 1,000+ Citibank branches in North America, reducing our branch energy costs by 15 percent annually while improving the speed with which we service our customers.
By Citi April 06, 2010 03:49 PM
Citi is working with the developer of the mobile phone application CauseWorld to support two organizations dedicated to alleviating poverty and supporting economic growth: BRAC and ACCION USA. Once downloaded, the CauseWorld app allows users to donate to those organizations and others by allocating "karma points" they've earned simply by checking in at certain retail stores. "Karma points" are converted by Citi into real dollar donations.
We've committed $700,000 toward the 18 organizations supported by CauseWorld, and with the inclusion of BRAC and ACCION USA, users can now focus donations on the type of long-term economic empowerment projects made possible by microfinance.
By Citi April 02, 2010 05:07 PM
Since the beginning of the mortgage crisis in 2007, we have worked in a variety of ways with over 824,000 homeowners to help them in their efforts to avoid foreclosure. CitiMortgage was among the first lenders to sign on to the U.S. Treasury's Home Affordable Modification Program (HAMP) and we recently agreed to participate in the Treasury's second-lien modification program. We have also provided deferments, extensions, repayment plans and other forms of modification to many mortgage customers in financial trouble. In addition, we offer the Citi® Homeowner Assistance Program, which engages at-risk customers who may show signs of financial distress even before they enter delinquency.
As a mortgage lender, CitiMortgage is very aware of the challenges that any job loss presents to a homeowner's finances. We have been out in front of the industry with the Citi® Homeowner Unemployment Assist Program, an innovative initiative started in March 2009, offering temporary mortgage relief to certain recently unemployed borrowers. Under the program, we lower monthly mortgage payments for qualifying CitiMortgage-owned loans to an average of $500 for three months, a figure below the average rent for a one-bedroom residence in the U.S. This program can help some homeowners while they get their financial feet back on the ground. If the customer is not employed within three months, we work with them on a case-by-case basis to explore the best solutions.