Ethical issues in citi bank

Facing pressure from community activists, Citi claimed that it would revamp the business to avoid abusive practices.

citigroup guidance

The SEC gave it a waiver from a rule that would have barred it from remaining in the securities business. Meltdown and Bailout When the financial crisis erupted inCiti was seen as one of the most vulnerable of the big institutions. That weight takes the form of underperforming, low-return businesses and Citi Holdings, the bank's cluster of bad assets and businesses put together after the financial crisis.

In the U. That same month, the Federal Reserve rejected Citi's plan for solidifying its capital position and increasing its shareholder dividend. This recycling of petrodollars created unsustainable levels of debt for much of the third world, which later came back to haunt Citibank and other Western institutions.

In a Citigroup retail industry analyst participated in a U. Citi had taken a proprietary short position against those assets without telling the investors.

Environment In the early s Rainforest Action Network targeted Citi for its role in financing projects—such as the Gobe oil fields in Papua New Guinea and the OCP pipeline in Ecuador—that contributed to the destruction of old-growth forests, displaced local communities, and accelerated global warming.

The second issue with Citi that analysts want to see cleaned up is the bank's legal mess in Mexico. A full takeover did not occur, but in February the fed government said it would increase its stake in Citi to 36 percent.

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CitiBank Unethical Business Practices by HATIM MATAR on Prezi