Citibank 2008 Annual Report Download - page 8

THE COMPANY
Citigroup Inc. (Citigroup and, together with its subsidiaries, the Company,
Citi or Citigroup) is a global diversified financial services holding company
whose businesses provide a broad range of financial services to consumer
and corporate customers. Citigroup has more than 200 million customer
accounts and does business in more than 100 countries. Citigroup was
incorporated in 1988 under the laws of the State of Delaware.
The Company is a bank holding company within the meaning of the U.S.
Bank Holding Company Act of 1956 registered with, and subject to
examination by, the Board of Governors of the Federal Reserve System
(FRB). Some of the Company’s subsidiaries are subject to supervision and
examination by their respective federal and state authorities. At December 31,
2008, the Company had approximately 134,400 full-time and 4,100 part-
time employees in the United States and approximately 188,400 full-time
employees outside the United States.
During 2008, the Company benefited from substantial U.S. government
financial involvement, including (i) raising an aggregate of $45 billion
through the sale of Citigroup non-voting perpetual, cumulative preferred
stock and warrants to purchase common stock to the U.S. Department of the
Treasury, (ii) entering into a loss-sharing agreement with various U.S.
government entities covering $301 billion of Company assets, and
(iii) issuing $5.75 billion of senior unsecured debt guaranteed by the Federal
Deposit Insurance Corporation (FDIC) (in addition to $26.0 billion of
commercial paper and interbank deposits of Citigroup’s subsidiaries
guaranteed by the FDIC outstanding at the end of 2008). In connection with
these programs and agreements, Citigroup is required to pay consideration to
the U.S. government, including in the form of dividends on the preferred
stock and other fees. In addition, Citigroup has agreed not to pay common
stock dividends in excess of $0.01 per share per quarter for three years
(beginning in 2009) or to repurchase its common stock without the consent
of U.S. government entities. For additional information on the above, see
“TARP and Other Regulatory Programs” on page 44.
On January 16, 2009, the Company announced a realignment, for
management and reporting purposes, into two businesses: Citicorp, primarily
comprised of the Company’s Global Institutional Bank and the Company’s
international regional consumer banks; and Citi Holdings, primarily
comprised of the Company’s brokerage and asset management business,
local consumer finance business, and a special asset pool. Citigroup believes
that the realignment will optimize the Company’s global businesses for
future profitable growth and opportunities and will assist in the Company’s
ongoing efforts to reduce its balance sheet and simplify its organization. See
“Outlook for 2009—Changes to Citi’s Organizational Structure” on page 7.
On February 27, 2009, the Company announced an exchange offer of its
common stock for up to $27.5 billion of its existing preferred securities and
trust preferred securities at a conversion price of $3.25 per share. The U.S.
government will match this exchange up to a maximum of $25 billion of its
preferred stock at the same conversion price. These transactions are intended
to increase the Company’s tangible common equity (TCE) and will require
no additional U.S. government investment in Citigroup. See “Outlook for
2009” on page 7.
The principal executive offices of the Company are located at 399 Park
Avenue, New York, New York 10022, telephone number 212 559 1000.
Additional information about Citigroup is available on the Company’s Web
site at www.citigroup.com. Citigroup’s recent annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, as well as the
Company’s other filings with the Securities and Exchange Commission
(SEC) are available free of charge through the Company’s Web site by
clicking on the “Investors” page and selecting “All SEC Filings.” The SEC
Web site contains reports, proxy and information statements, and other
information regarding the Company at www.sec.gov.
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