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A Summary of Citibank: 1960′s To Date

December 17th, 2009
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07.13.2010 update: notes at page bottom
02.13.2016 update: page format update. Broken stock charts. Unable to repair (removed)

A Summary of Citibank: 1960’s To Date

original article written by Net Advisor

The following is a bit of satire of Citibank from the 1960’s to date and how business and government responds to each other.

1960’s to 1999 Citibank:
Let’s get into the underwriting business, brokerage business, and insurance business. So what if we never did that before, we are a bank and banks make money. It’s gonna cost us $300 million to lobby Congress to make that happen. Ok. Are there any risks? Naaaa.

2006-2007 Citibank:
Lend to anyone with a heartbeat.

2008-2009 Citibank:
That’s wasn’t a good idea. We need a bailout.

08-2009 Citibank:
Our stock went from under $1.00 to $5.23 (Late Aug 2009).

08-2009 U.S. Government
Do we sell now and take profits. Oh wait we took it over so we pretty much ARE Citibank. Selling could plunge the stock. Hmmm, don’t sell now, but we might later.

12-2009 Citibank:
Gee, even Bank of America repaid TARP. It’s pretty much us now who hasn’t repaid.

We are changing the way we do banking. New regulation.

Banks need to lend more.

Banks (in general):
Uh…we did that, and you had to bail us out.

We are going to tell the banks how much they are going to be paid since we bailed you out.

Banks (in general):
Say what? If they do that, we will lose talent to the stronger banks.

Banks (in general):
Pay Back TARP.

Quickly take credit for banks repaying TARP money.

Hey let’s pay back TARP too, and see if your stocks goes up as well.

We’re selling our Citibank stock. Our Citibank stock is only down 37% since we first talked about selling.

Are you really going to sell below your cost and have taxpayers lose money on the
CitiBank bailout right before mid-term elections?

OK, we’re not selling…. but we might in 90 days…. or maybe within 12 months.

Citibank Losses: $120 Billion
Citibank Bailout: $45 Billion cash (TARP)
Citibank Loan Loss/ Government Guarantees: $250 Billion.


07.13.2010 Notes:
Citibank and Citigroup are terms used interchangeably. Citigroup was more commonly used when the company also once owned major pieces of financial real estate such as Travelers Insurance (2002 spin-off), Smith Barney brokerage, Primerica [a historically high controversial multi-level marketing financial services company (read more)], and other assets. After the government takeover of Citi, what is virtually left is more of a pure bank than what existed before. Nothing wrong at being a pure bank. In fact this might be what Citibank needs to do in order to restructure and maintain their banking business, a “getting back to basics.”

Financial Disclosure:
As of update, 07-13-2010, Net Advisor™ and or client(s) have been holding long positions, hedged positions, and various option positions in Citibank, subject to change without notice.

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