Citi Reaches Milestone in 'Green' Building Program: 30 Citibank and CitiFinancial Branches Designed with Sustainable Features
Press Release, May 29, 2008
As part of its commitment to address global climate change, Citi announced that it is the first company to achieve Leadership in Energy and Environmental Design (LEED) pre-certification for a retail commercial interior prototype through a pilot U.S. Green Building Council (USGBC) program.
New CitiFinancial branches in Austin, Texas, and Flint, Mich., and the Citibank financial center in Warrington, Penn., are the first Citi branches to be certified in this pilot program. An additional 27 CitiFinancial and Citibank branches were designed with the same features and are in the process of pursuing LEED certification.
"This is part of our approach to embed sustainable business practices throughout our operations – from our buildings to the supply chain to information technology," said Kevin Kessinger, Chief Operations & Technology Officer. "For Citi, green business is good business. It is an important part of being a responsible corporate citizen and operating the business efficiently."
The USGBC Portfolio Program, currently in pilot phase, focuses on the permanent integration of green building and operational measures – portfolio-wide – into the standard business practices of companies and organizations. The Portfolio Program recognizes market leaders who have committed to and achieved high levels of LEED certification within their portfolio.
"Citi is a true market leader in green building," said USGBC's Market Development Vice President Doug Gatlin. "And they should be commended for their achievement. By participating in the Portfolio Program pilot, Citi is taking action to rapidly implement green building practices across its portfolio to directly address global environmental challenges. The program is a tremendous step forward in our fight to slow climate change and reduce energy dependence."
The new CitiFinancial and Citibank branches use less energy and water and include environmentally friendly features, such as:
- low-flow plumbing fixtures
- energy-efficient office equipment
- lights that automatically turn off when rooms are unoccupied
- carpet, desks, seating, fabrics and cabinetry made from recycled materials
- furniture, finishes and construction materials that meet stringent indoor air quality emissions tests
- Green e-certified power to provide 50% of the electrical load at the Citibank branches for at least two years
Citi Names Deborah Hopkins Chief Innovation Officer
Press Release, May 14, 2008
Citi announced today the appointment of Deborah Hopkins to the new position of Chief Innovation Officer, effective immediately. Since joining Citi in 2002, Ms. Hopkins has held several senior roles at the company, including Chief Operations and Technology Officer and Head of Corporate Strategy, Mergers & Acquisitions. This new role will bring together the strategy, information technology and research and development to drive cross-business, client-focused innovation across the company. Ms. Hopkins will report to Don Callahan, Citi's Chief Administrative Officer.
Ms. Hopkins will be responsible for developing and leading Citi's approach to creative, forward-looking collaboration with external constituencies, including current and prospective clients, venture capital firms, government agencies and academic institutions. She also will create and direct methods to maximize the internal creativity of Citi's newly reorganized corporate structure with the goal of creating operating efficiencies across global products, regions and the enterprise as a whole.
Ms. Hopkins also will retain her current role of Managing Director and Senior Advisor, Citi's Institutional Clients Group, where she will continue to support and advise Investment Banking clients.
"Innovation is critical for Citi's future growth, and I am delighted that Debby has accepted this important new challenge," said Vikram Pandit, Citi Chief Executive Officer. "As Chief Innovation Officer, Debby will work closely with Citi's regional and product leadership to help us serve clients better by driving innovation through the enterprise."
Citi & NY Mets Cover All Bases to Teach Kids to Save
Press Release, April 29, 2008
Citi and NY Met Aaron Heilman took a fieldtrip to teach William Hallett Elementary School students in Queens the value of saving as part of the American Bankers Association Education Foundation’s twelfth annual Teach Children to Save Day (TCTS). Volunteers make learning fun using real-life scenarios and hands-on experiences to help young people understand how interest makes money grow, how to budget and how to distinguish needs from wants.
“Citi is committed to helping young people learn the facts about money,” explained Eileen Auld, New York State Community Relations Director, Citi. “Teach Children to Save is an integral part of our commitment. Citi’s support of TCTS began in 2000. Since then, over 3,000 Citi volunteers have taught saving skills to more than 98,000 students.”
Later in 2008, Citi and the ABA Education Foundation will expand the TCTS program internationally, to provide financial education in South Africa, Turkey and Mexico.
“We knew that financial illiteracy was a worldwide problem, but we didn’t expect the Teach Children to Save model to translate so easily in other countries,” said Laura Fisher, director of the ABA Education Foundation. “It’s exciting to imagine the global banking industry uniting to Teach Children to Save and we’re grateful for Citi’s leadership and support.”
In 2007, Citi and the Citi Foundation invested nearly $36 million in 65 countries, for a total of almost $121 million to date. Combined, the Citi Foundation and Citi-sponsored programs last year touched the lives of nearly 22 million people worldwide.Richard Evans to Join Citi as Chief Risk Officer for Citi Institutional Clients Group
Press Release, April 17, 2008
Citi today announced it has appointed Richard Evans as Chief Risk Officer for Citi Institutional Clients Group. Mr. Evans will be responsible for managing and tracking the firm's risks across corporate and investment banking, sales and trading, transaction services and alternative investments. He will report to Citi Chief Risk Officer Brian Leach, and will join the Institutional Clients Group Management Committee chaired by John Havens, CEO of Citi Institutional Clients Group.
Mr. Evans will be responsible for setting strategic risk parameters and managing capital allocation for Citi Institutional Clients Group, as well as ensuring that the firm takes advantage of growth opportunities that meet appropriate risk-return standards.
"Strong risk management and its use as a competitive advantage are a key priority for Citi. We've made good progress toward our goal of building a comprehensive, best-in-class risk management function that plays a critical role in strategy and capital allocation," said Mr. Leach.
"Richard is one of the best risk managers in the business. He will play a key role in further embedding intelligent risk-taking into every decision we make for our clients and the firm," said James Forese, Head of Markets for Citi Institutional Clients Group and Chair of Citi's Markets & Banking Risk Committee.
About Richard Evans
Mr. Evans joins Citi from Deutsche Bank AG, where he served most recently as Deputy Chief Risk Officer. That role included running Treasury and Capital Management, Market Risk Management, and Investment Risk Management, including significant involvement in the bank's strategic risk decisions. He was named the "Risk Manager of the Year" in 2004 by Risk Magazine.
Before joining Deutsche in 2000, Mr. Evans served in a variety of senior roles at JP Morgan over nearly 20 years, his last role being Vice Chairman of JP Morgan's Risk Management Committee and Global Head of Risk Management.
Mr. Evans, 47, has an MA in Economics from Gonville and Caius College, Cambridge University. He was a Board Member of Euroclear SA and Euroclear Plc and Chairman of that Board's Risk Committee. He is also a past Chairman and member of the International Financial Risk Institute (IFRI)'s Executive Committee, a not-for-profit association of Chief Risk Officers from the world's major financial institutions.
World's Largest Bank Joins Sustainability Network
Environment News Service, April 7, 2008
The world's largest financial services company, Citi Inc., has joined a network of investors, environmental groups and other public interest organizations working with companies to address sustainability challenges.
Citi was approved March 27 as a Ceres network company by the Ceres board of directors, who cited the company's leadership on climate change as a determining factor.
Companies that join the Ceres company network commit to making continuous strides in improving their sustainability performance and reporting practices.
Citi is among more than 70 companies in the Ceres network, including more than 20 Fortune 500 companies. Ceres also directs the Investor Network on Climate Risk, comprised of more than 60 institutional investors who collectively manage over $5 trillion in assets.
"We are pleased and excited to join the Ceres network. Ceres is a well-respected NGO known for its expertise on climate change and stakeholder engagement," said Pamela Flaherty, president and chief executive of the Citi Foundation and director for citizenship at Citi, "We look forward to partnering with them to further develop our initiatives in this space."
Citi provides consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's brand names include Citibank, CitiFinancial, Primerica, and Smith Barney.
Until 2004, Citi was one of the world's top funders of the fossil fuel and logging industries, which made the corporation a major target of the Rainforest Action Network, RAN, and other environmental groups. Embarrassed by demonstrations such as a 35-foot-tall Earth-shaped balloon carrying the message "Citi Lives Richly and the Earth Pays!" at Cornell University and similar critical banners in front of its New York headquarters, in 2004, RAN and Citigroup agreed that the corporation would adopt an environmental policy to guide its lending practices, a step other banks have since taken.
In May 2007, Citi announced its latest expansion of the company's sustainability program with a $50 billion commitment over the next 10 years to address global climate change.
The company says it intends to act through investments, financings and related activities to support the commercialization and growth of alternative energy and clean technology among the clients and markets it serves, as well as within its own businesses and operations.
"Citi's commitment to tackle the challenges posed by climate change is exciting," said Mindy Lubber, president of Ceres. "Citi is well positioned to reduce both its own operational greenhouse gas footprint and those of its clients. Ceres looks forward to working with Citi to develop solutions to the climate threat and further integrate sustainability into the company's business strategies, products and services."
Citi joins financial service companies Bank of America, State Street, and Wachovia, which are already members of the Ceres network.
In January, Ceres released a report, "Corporate Governance and Climate Change: the Banking Sector," which analyzes climate change governance practices of the world's largest banks. Of the 40 banks scored in the report, Citi was ranked highest among U.S. banks.
The report found that a growing number of banks are beginning to factor the risks of climate change into their businesses, but that more aggressive actions are needed from banks, such as explicitly incorporating carbon costs and climate risk into their lending and investment decision-making.
In response to this growing concern around the carbon impact of investments, Citi joined JP Morgan and Morgan Stanley last month in releasing the Carbon Principles, a new set of guidelines for advisors and lenders to U.S. power companies.
The principles were in response to the financial risks power companies face from emerging carbon-reducing regulations.
"The Carbon Principles are a great start and are heading in the right direction by putting carbon intensive industries on notice that they need to factor carbon costs and climate risks into their business development plans," Lubber said.
"We are looking forward to seeing Citi and the other bank signatories take these principles a step further by disclosing specifics on actual implementation," said Lubber, "including carbon pricing."
Environmentalists are by no means satisfied with Citi's position. The Rainforest Action Network says the Carbon Principles are "an important step toward recognizing the climate risks associated with financing coal plants" but the group says they are "limited by their lack of any binding commitments and their failure to address the impact of destructive coal extraction methods such as mountaintop removal mining."
In December, Rebecca Tarbotton, director of Rainforest Action Network's Global Finance Campaign, pointed out, "Citi is the largest financier of the coal industry, which is by far the leading cause of climate change."
The environmental group is urging Citi's new chief executive Vikram Pandit to "set new standards for the banking industry by refusing to invest in outmoded and dangerous industries like coal."Mark Rufeh to Join Citi Institutional Clients Group as CAO and Head of Productivity
Business Wire, April 7, 2008
Citi announced today that Mark Rufeh will join the company as Chief Administrative Officer and Head of Productivity for the Institutional Clients Group. In this new role, Mr. Rufeh will be responsible for maximizing productivity and efficiency in order to improve financial performance and fund business growth.
Mr. Rufeh will oversee operations, technology, real estate, procurement, and corporate services functions, as well as lead our efficiency programs and the management of our cost base. He will report to John Havens, the Chief Executive Officer of Citi Institutional Clients Group, and work closely with Carl Levinson, Head of Productivity Improvement & Re-Engineering for Citi. Mr. Rufeh will also join the Institutional Clients Group Management Committee.
Mr. Rufeh was most recently the Chief Administrative Officer for the investment banking division of Credit Suisse Group. He previously served as CEO of The Westchester Capital Group, a private equity firm, and spent 15 years with Lehman Brothers, where he held a variety of senior leadership positions.
“Mark comes to us with a phenomenal record within our industry, of delivering material improvements in financial performance through the implementation of innovative efficiency programs, industry-leading support services and the effective management of costs. Those priorities are at the heart of our commitment to provide world-class execution to our clients and exceptional value to our shareholders,” Mr. Havens said. “Instilling a disciplined and sustained approach to the management of our costs and delivering ongoing and structural efficiency improvements is essential to improving our financial performance and continuing to move our business forward.”
Mr. Rufeh is the latest in a series of internal and external appointments of world-class talent at Citi since Vikram Pandit became CEO last December. These appointments are aligned with Mr. Pandit’s commitment to build a culture based on teamwork and the best possible talent; manage Citi’s capital for greater profitability; and create a strong base for future earnings growth through a more streamlined, client-focused organization.
About Mr. Rufeh
Mark Rufeh, 49, was most recently the Chief Administrative Officer for the investment banking division of Credit Suisse Group, where he was responsible for overseeing all aspects of the division’s operating infrastructure, including operations, technology strategy, and corporate services. He was also responsible for the execution of the investment bank’s expense management programs. Mr. Rufeh spent 15 years with Lehman Brothers, where he was a member of the Lehman Brothers Operating Committee. He held a series of senior leadership positions including Chief Operations Officer, Chief Financial Officer of the Lehman Division, Chief Operating Officer of the Corporate Advisory Division and Chief Administrative Officer of the Derivatives Product Group. Mr. Rufeh began his career with The First Boston Corporation in the mortgage business.
Citi Announces New Corporate Organizational Structure and Leadership Team
Press Release, March 31, 2008
Vikram Pandit, Citi's Chief Executive Officer, today announced a comprehensive reorganization of Citi's structure to achieve greater client focus and connectivity, global product excellence, and clear accountability. The new organizational structure will allow Citi to focus its resources towards growth in emerging and developed markets and improve efficiencies throughout the company.
Citi has established a regional structure to bring decision-making closer to clients. It is empowering the leaders of the geographic regions with the authority to make decisions on the ground. These geographic regions are each led by a single chief executive officer who reports to Mr. Pandit. Asia Pacific, including Japan, will be led by Ajay Banga. Western Europe, Middle East and Africa will be headed by William Mills. The Central and Eastern European region will be led by Shirish Apte. Manuel Medina Mora will continue to lead Mexico and Latin America.
In addition, Citi has reorganized its consumer group into two global businesses – Consumer Banking and Global Cards. The company announced today in a separate press release that Teresa A. "Terri" Dial will join Citi as Global Head of Consumer Strategy and CEO of Consumer Banking in North America. Citi has also consolidated its United States and international credit card businesses into a single global business led by Steven Freiberg, CEO of Global Cards.
Institutional Clients Group and Global Wealth Management, which are already organized as global businesses, will continue to be led by John Havens and Sallie Krawcheck, respectively. The four global businesses will allow Citi to deliver on product excellence in close partnership with the regions. The product leaders also will report to Mr. Pandit.
"Our new organizational model marks a further important step along the path we are pursuing to make Citi a simpler, leaner and more efficient organization that works collaboratively across the businesses and throughout the world to benefit clients and shareholders," said Mr. Pandit. "With this new structure, we reinforce our focus on clients by moving the decision-making process as close to clients as possible and assigning some of our strongest talent to lead the regional areas and global product groups."
As part of the reorganization, in order to drive efficiency and reduce costs, Citi will further centralize global functions, including finance, information technology (IT), legal, human resources, and branding. By centralizing these global functions, particularly IT, Citi will reduce unnecessary complexity, leverage its global scale, and accelerate innovation. Risk is already centralized.
The business reorganization reflects priorities outlined by Mr. Pandit, who has been conducting intensive business reviews since being named CEO, to drive greater cross-business collaboration; eliminate bureaucracy and create a nimbler, more client-focused organization; ensure strong risk management and capital resources; and drive cost and operational efficiencies to generate additional shareholder value.
Citi Foundation Launches $11.2 Million International Microfinance Program in Partnership with the SEEP Network
Press Release, March 20, 2008
The Citi Foundation today announced a three-year US$11.2 million international grant program, in partnership with the SEEP Network to advance the integration of microfinance into the mainstream economies of developing countries. The Citi Network Strengthening Program will increase the ability of 12 major microfinance networks and their members to develop products and services that meet the needs of their clients. In addition, the program aims to enhance the industry's infrastructure, introduce higher standards of management and governance, and promote the vital role of microfinance in providing the poor with access to financial services.
This program builds on the Citi Foundation's long-standing support of the microfinance industry. Over the past decade, the Citi Foundation has contributed nearly US$60 million in funding to support 250 microfinance institutions, microfinance networks and microenterprise programs in 55 countries.
Pam Flaherty, President and CEO, Citi Foundation said, "We are very pleased to launch the Citi Network Strengthening Program this year. The microfinance industry currently serves approximately 113 million poor individuals, however, there are still 1.7 billion individuals earning less than $2 per day. Reaching scale and meeting client demand is currently one of the greatest challenges facing microfinance institutions. The objective of our program is to address that challenge by increasing the capacity of microfinance networks in specific geographies, helping them to expand their operations and better serve the needs of the poor."
Bob Annibale, the head of the Citi Microfinance Group and a board member of the SEEP Network added, "The outstanding regional and local microfinance networks selected to participate in this program are committed to improving the efficiency and effectiveness of their MFI members, promoting performance standards, and contributing to the growth of the microfinance industry overall. As local knowledge centers that share information, learnings and best practices in support of the microfinance industry, we are confident that their participation in the Citi Network Strengthening Program will result in expanded outreach to microfinance clients in the countries they serve."
Additionally, Bill Tucker, Executive Director, SEEP Network, noted that, "SEEP is privileged to partner with the Citi Foundation to implement the Citi Network Strengthening Program. SEEP supports microfinance networks throughout the world, and this important program will provide the networks with opportunities to confirm their current goals, enhance their core capabilities, learn from and orient network peers in other countries who are also participating in this program, and, ultimately, improve services to micro-entrepreneurs through its member organizations."
Following are the twelve networks participating in the Citi Network Strengthening Program. In total they represent approximately 60 countries, over 1,300 MFIs and microfinance organization members, and more than 19 million clients.
• Asia Pacific: Banking With the Poor Network, Asia Pacific; China Association for Microfinance; Microfinance Council of the Philippines; and Sa-Dhan, India
• EMEA: Association of Microfinance Institutions of Uganda; Microfinance Centre for Central & Eastern Europe & New Independent States; Pakistan Microfinance Network; Russian Microfinance Center; and Sanabel, Middle East
• The Americas: ProDesarrollo, Mexico; Red Financiera Rural, Ecuador; and REDCAMIF, Central America
• The Citi Network Strengthening Program will include:
• A comprehensive assessment of the network's capacity to meet the needs of its members;
• An in-depth report on the microfinance industry in the respective country or region;
• Strategic, business and implementation plans which may include embracing new technologies, advocating for interest rate liberalization, establishment of ratings agencies and credit bureaus, creating local debt and equity ratings funds that raise domestic capital, and developing links between the commercial finance and microfinance sectors.
In addition, Citi Microfinance, a business unit, supports the microfinance sector through commercial activities that build scale, lower costs and introduce new products. Citi Microfinance currently has business relationships with more than 70 MFIs in over 35 countries in Asia, Latin America, Africa, Eastern Europe and the Middle East, as well as global microfinance networks, specialized fund managers, and investors.
Citi Names Michael Klein Chairman, John Havens Chief Executive Officer of Institutional Clients Group (ICG)
Press Release, March 17, 2008
New York – Citi today announced the appointments of Michael Klein as Chairman and John Havens as Chief Executive Officer of the Institutional Clients Group (ICG), effective immediately. ICG is comprised of Citi Markets & Banking (CMB) and Citi Alternative Investments (CAI). Mr. Klein and Mr. Havens will report to Vikram Pandit, Chief Executive Officer of Citi. Mr. Havens has also been appointed Chairman of CAI.
Today's appointments are another in a series of actions taken by Mr. Pandit since becoming CEO last December. These actions reflect Mr. Pandit's commitment to build a culture based on teamwork and the best possible talent; manage Citi's capital for greater profitability; and create a strong base for future earnings growth through a more streamlined, client-focused organization. "Mr. Klein and Mr. Havens will play vital roles in Citi and ICG achieving these objectives," Mr. Pandit said.
Mr. Klein will lead the organization to closer ties with clients and concentrate on building client relationships with prominent corporations, governments and institutions around the world. Mr. Havens will be responsible for the management and strategic oversight of ICG as well as for setting the strategy and direction of CAI. In addition, Mr. Klein, working with Mr. Pandit, Mr. Havens and Citi's senior management, will focus on ICG and corporate strategies. Mr. Klein will chair a company-wide client committee focused on delivering "one-Citi" to all clients and work on other firm-wide projects.
Mr. Pandit said, "I am confident that with Michael focused on leadership with clients and John focused on management, we have a great partnership leading this institution."
"Michael Klein has an unmatched network of relationships with CEOs and heads of state," Mr. Pandit said. "In today's environment, it is more important than ever to have a dedicated individual to concentrate on building these deep relationships. Michael has been instrumental in the growth and success of Citi because he is relentlessly focused on our clients. In fact, he has played a major role in the strategy and execution of just about every monumental or complex transaction in the last twenty years. There is no one more qualified to strengthen and deepen Citi's network of key relationships around the world."
Mr. Havens, previously CEO of CAI, is a proven industry leader and a highly respected manager and operating executive. During his nearly 30-year career, he is widely known for building important relationships with clients and regulators across the globe as well as operating tightly-managed, client-focused businesses.
"John Havens is one of the most experienced and respected operating executives in financial services," Mr. Pandit said. "His primary goals will be to take full advantage of the breadth of our products and our geographic scope, while ensuring we have the best possible risk management in place. His leadership skills are perfectly suited for capturing the many opportunities we see at this time."
The leaders of ICG reporting to Mr. Havens include: James Forese (Head of Sales and Trading/Capital Markets); Ray McGuire, (Co-Head of Investment Bank); Alberto Verme (Co-Head of Investment Bank); Edward "Ned" Kelly (CEO and President of CAI); Michael Corbat, (Head of Corporate and Commercial Bank); Paul Galant, (Head of Global Transaction Services); and Hamid Biglari (Chief Operating Officer of ICG).
"The senior leadership team supporting Michael and John is a deep and talented bench, composed of smart, strategic team players. By putting the right talent in the right places, we are enhancing Citi's ability to meet the evolving needs of our institutional clients and address the long-term growth trends in both developed and developing markets," Mr. Pandit said.
Vikram Pandit's Key Priorities
Since becoming CEO in December, Mr. Pandit has been conducting intensive business reviews. While these reviews are ongoing, Mr. Pandit has identified and emphasized the following key priorities for Citi:
• Better manage the firm's capital resources and risk management for improved profitability, stability and future growth;
• Eliminate bureaucracy and encourage collaboration across business lines while creating a nimbler, more client-focused organization;
• Create a culture for our employees that rewards meritocracy and drives accountability and teamwork; and
• Drive cost and operational efficiencies to generate additional shareholder value.
Michael Klein
Mr. Klein was most recently Chairman and Co-Chief Executive Officer of CMB, with primary responsibilities for corporate client coverage and Global Transaction Services across Citi. He was previously Chief Executive Officer of Global Banking, a position he held since the group's inception in February 2004.
Prior to this, Mr. Klein was CEO of CMB for Europe, Middle East and Africa. He has also held the positions of CEO of CMB, Europe, and Co-Head of Global Investment Banking for Salomon Smith Barney. In early 1999, he was given responsibility for the expansion of the firm's European investment banking business. A major step in that development was the merger, in May 2000, of Salomon Smith Barney's European operation with Schroders, a leading UK and European Merchant Bank. Mr. Klein joined the Mergers & Acquisitions group of Salomon Brothers after graduating cum laude from the Wharton School of Business. Since 1987, and prior to becoming Co-Head of the Global Investment Bank, he has been responsible for the firm's Global Financial Entrepreneurs and Private Equity Groups.
John Havens
Mr. Havens was formerly the Chief Executive Officer of CAI. Prior to joining CAI, Mr. Havens was a founder and Partner of Old Lane, LP, a multi-strategy hedge fund and private equity fund manager that was acquired by Citi in 2007. Before forming Old Lane in 2005, Mr. Havens was Head of Institutional Equity at Morgan Stanley and a member of the firm's Management Committee. In his 19-year career at Morgan Stanley, Mr. Havens held several positions of increasing authority and served on the new product, risk and capital allocation committees. Mr. Havens has served on many NYSE committees over the years and just ended a term as a Director of the NASDAQ market. After receiving his B.A. from Harvard, he began his career in 1979 at Kidder Peabody.
Citi Names Brian Leach Chief Risk Officer
Press Release, February 27, 2008
New York – Citi today announced that Brian Leach will assume the role of Chief Risk Officer for Citi, reporting to Chief Executive Officer Vikram Pandit. Mr. Leach will also become Acting Chief Risk Officer for the Institutional Clients Group. In addition, the company named four new senior managers to the Risk organization – Suneel Bakhshi, Charles Monet, Greg Hawkins, and Adil Nathani – all reporting to Mr. Leach.
In his new role, Mr. Leach will lead Citi's efforts to manage and track all risks undertaken by the company. He will also lead efforts to set strategic risk parameters and will play a critical role in capital allocation to ensure that Citi takes advantage of growth opportunities that meet appropriate risk-return standards. To achieve these goals, he will work closely with Mr. Pandit and other members of Citi senior management.
"Taking intelligent risk is the core of our business. As our industry grapples with one of the most difficult periods in market history, we at Citi are moving aggressively to transform our risk management culture into a significant competitive advantage," Mr. Pandit said. "Brian is a widely respected industry risk veteran, and I am confident that he and our Risk team will lead an independent, best-in-class risk management function that exercises prudent judgment in managing the risks inherent in our business and plays an important role in Citi's capitalizing on emerging growth opportunities."
Jorge Bermudez, a 33-year veteran of Citi, has decided to retire. Over the last three months, Mr. Bermudez has worked closely with senior management on assessing and developing a plan for the risk function going forward.
"I would like to thank Jorge for his excellent stewardship during a difficult transition time for all of us," Mr. Pandit said. "Last October, Jorge informed senior management of his intention to retire, and given the challenges facing the Risk organization, he agreed to take on the leadership of the function. He will apply the same dedication as he works with Brian over the coming months on a new governance structure for the Risk organization."
Citi also announced that Suneel Bakhshi will become Chief Risk Officer of the Global Consumer Group and for Citibank N.A., reporting to Mr. Leach. In this role, Mr. Bakhshi will be responsible for managing risk, including market, credit and operational risks, in these entities. Mr. Bakhshi, whose 25-year career with the company has spanned corporate and commercial banking, derivatives trading, and Risk Treasury, is currently Head of the Global Commercial Bank, Citi Markets & Banking. Prior to his current role, Mr. Bakhshi was Head of Emerging Markets Corporate Banking. He previously held senior roles around the world, including Global Head of Emerging Markets Local Finance, Head of Sales and Trading in Central Eastern Europe, Middle East & Africa, Derivatives Trading in Europe, and Derivatives in Japan. Prior to that, Mr. Bakhshi worked for 10 years in various roles in Risk Treasury, including as Head of Middle East Risk Treasury.
Citi announced that Charles Monet will assume responsibility for Risk Oversight of Capital Allocation. Mr. Monet currently serves as an advisor to the co-chairmen of the Basel subcommittee defining regulatory capital requirements for default risk in banks' trading books. He is Chairman of the subcommittee's technical working group, which prepares quantitative analyses of risk and capital issues. Previously, he served as Head of Credit Risk Methodology at Morgan Stanley from 2001 to 2006, and was Head of Risk Methodology Research at JP Morgan & Co from 1996 – 2001. While at JP Morgan, he was responsible for developing and implementing the firm's economic capital model. He holds an M.S. in Management from M.I.T. and a B.A. from Harvard College.
Citi announced that Greg Hawkins will assume responsibility for Risk Oversight of Real Estate and Mortgage Exposure. Dr. Hawkins was an Assistant Professor in Finance at the Business School at the University of California, Berkeley. He joined Salomon Brothers in 1985, starting in Mortgage Research, and eventually becoming Managing Director and co-head of U.S. Fixed Income Arbitrage. He subsequently joined Long Term Capital Management as a founding Partner in 1993. In 2001, he became a Managing Director of Caxton Associates and was Senior Portfolio Manager of Caxton Relative Value Holdings in Greenwich, CT. Dr. Hawkins was among the first in the fixed income markets to develop a new generation of mathematical models to value, trade, and manage large relative value portfolios. These models form the basis of today's most widely used tools in the fixed income markets.
Adil Nathani will assume responsibility for Risk Oversight of Structured Credit. Mr. Nathani is a Managing Director and a member of Old Lane's Fixed Income team. Previously, he served as Managing Director, Group Executive, and a Board Member at IXIS Capital Markets, where he also ran various groups, including Asset Securitization and Finance; Credit Products; Stable Value Programs; and Structured Credit Products. Prior to that, Mr. Nathani spent several years managing fixed income assets at Smith Breeden Associates, AMBAC, and Normandy Asset Management. Mr. Nathani holds a bachelor's degree from University of Bombay, Sydenham College, India, and Master of Business Administration from Fuqua School of Business, Duke University.
Mr. Leach is currently the Chief Risk Officer and Co-Chief Operating Officer of Old Lane. Prior to co-founding Old Lane, Mr. Leach worked for his entire financial career at Morgan Stanley, most recently as Risk Manager of the Institutional Securities Business. From October 1998 to December 1999, he was one of six managers selected from a consortium of 14 global financial institutions to manage the liquidation of Long Term Capital Management and was one of only two who were present for the duration. Upon his return from this assignment, he was named Chief Operating Officer for Morgan Stanley's Fixed Income Division, where he had broad oversight responsibilities for the division's risk, technology, operations and legal functions.
Mr. Leach holds a bachelor's degree in economics from Brown University, and a master's degree in business administration from Harvard Business School.
EPA Recognizes Citi Among Nation's Leading Green Power Purchasers
Press Release, February 22, 2008
New York – As part of its commitment to sustainable business practices, today Citi announced that it has been recognized by the U.S. Environmental Protection Agency (EPA) for its leading green power purchase and participation in the Agency's Fortune 500 Green Power Challenge.
Citi is purchasing more than 56 million kilowatt-hours of green power, a 55% percent increase over its purchases in 2007. Citi is buying renewable energy certificates from Constellation NewEnergy, a wholly owned subsidiary of Constellation Energy (NYSE: CEG), and a leading national supplier of green power products. Purchase of certified green wind power will provide 100% of the energy load for the next five years at Citi's newest skyscraper, Two Court Square in Long Island City, New York. The building has been awarded the prestigious Gold Leadership in Energy and Environmental Design (LEED) certification by the U.S. Green Building Council.
"This is part of our approach to embed sustainable business practices throughout our operations, globally – from energy consumption to procurement to IT," said Kevin Kessinger, Chief Operations & Technology Officer. "For Citi, green business is good business. It is an important part of being a responsible corporate citizen and operating the business efficiently."
According to the EPA, Citi's green power purchase is equivalent to avoiding the carbon dioxide emissions of more than 8,000 passenger vehicles per year, or is the equivalent amount of electricity needed to power more than 6,000 average American homes annually.
Green power is electricity that is generated from environmentally preferable renewable resources, such as wind, solar, geothermal, biogas, biomass and low-impact hydro. These resources generate electricity with a net zero increase in carbon dioxide emissions, while offering a superior environmental profile compared to traditional power generation sources. Green power purchases also support the development of new renewable energy generation sources nationwide.
"EPA applauds our Fortune 500 partners for protecting our environment by purchasing green power," said EPA Administrator Stephen L. Johnson. "By voluntarily shifting to renewable energy, Citi is proving you don't need to wait for a signal in order to go green."
As part of its commitment to reduce greenhouse-gas emissions by 10% by 2011, Citi has committed to achieving environmental certification globally for the construction of all new office buildings and operations centers and evaluation of existing larger facilities. In addition to using green power, the Two Court Square building features include:
- Avoidance of 768 tons of carbon dioxide emissions through the use of high-performance window glazing; energy-efficient lighting and air-conditioning systems; lighting controls; and office occupancy sensors.
- Workstations, carpeting and furniture made from recycled materials and/or through eco‑friendly manufacturing processes.
- Views to the outside for 90% of cubicles, offices and conference rooms.
- Approximately 90% (4,590 tons) of structural steel contains post-consumer recycled content.
- Conserving approximately two million gallons of water per year through efficient plumbing fixtures and a storm-water recycling system that captures rain water in a retention tank for use in cooling towers and for all site irrigation.
- An indoor bicycle rack for employees.
- During construction, more than 90% of the waste was recycled and diverted from landfills.
Leading Wall Street Banks Establish The Carbon Principles
Press Release, February 4, 2008
Guidelines to strengthen environmental and economic risk management in the financing and construction of electricity generation.
NEW YORK – Three of the world's leading financial institutions today announced the formation of The Carbon Principles, climate change guidelines for advisors and lenders to power companies in the United States. These Principles are the result of a nine-month intensive effort to create an approach to evaluating and addressing carbon risks in the financing of electric power projects. The need for these Principles is driven by the risks faced by the power industry as utilities, independent producers, regulators, lenders and investors deal with the uncertainties around regional and national climate change policy.
The Principles were developed in partnership by Citi, JPMorgan Chase and Morgan Stanley, and in consultation with leading power companies American Electric Power, CMS Energy, DTE Energy, NRG Energy, PSEG, Sempra and Southern Company. Environmental Defense and the Natural Resources Defense Council, environmental non-governmental organizations, also advised on the creation of the Principles.
This effort is the first time a group of banks has come together and consulted with power companies and environmental groups to develop a process for understanding carbon risk around power sector investments needed to meet future economic growth and the needs of consumers for reliable and affordable energy. The consortium has developed an Enhanced Diligence framework to help lenders better understand and evaluate the potential carbon risks associated with coal plant investments.
The Principles recognize the benefits of a portfolio approach to meeting the power needs of consumers, without prescribing how power companies should act to meet these needs. However, if high carbon dioxide-emitting technologies are selected by power companies, the signatory banks have agreed to follow the Enhanced Diligence process and factor these risks and potential mitigants into the final financing decision.
"There was full and frank dialogue around the table," said Matt Arnold, director of Sustainable Finance, which helped coordinate the development of the Principles and Enhanced Diligence process. "There was a remarkable amount of debate and exchange of information and views among the banks, power companies and environmental organizations. The dialogue resulted in a rigorous analysis of the carbon risks in power investments, and sets the stage for further discussion."
Citi, JPMorgan Chase and Morgan Stanley have pledged their commitment to the Principles to use as a framework when talking about these issues with clients. This effort creates a consistent approach among major lenders and advisors in evaluating climate change risks and opportunities in the US electric power industry. The Principles and associated Enhanced Diligence represent a first step in a process aimed at providing banks and their power industry clients with a consistent roadmap for reducing the regulatory and financial risks associated with greenhouse gas emissions.
The Principles are:
- Energy efficiency. An effective way to limit CO2 emissions is to not produce them. The signatory financial institutions will encourage clients to invest in cost-effective demand reduction, taking into consideration the value of avoided CO2 emissions. We will also encourage regulatory and legislative changes that increase efficiency in electricity consumption including the removal of barriers to investment in cost-effective demand reduction. The institutions will consider demand reduction caused by increased energy efficiency (or other means) as part of the Enhanced Diligence Process and assess its impact on proposed financings of certain new fossil fuel generation.
- Renewable and low carbon distributed energy technologies. Renewable energy and low carbon distributed energy technologies hold considerable promise for meeting the electricity needs of the US while also leveraging American technology and creating jobs. We will encourage clients to invest in cost-effective renewables and distributed technologies, taking into consideration the value of avoided CO2 emissions. We will also encourage legislative and regulatory changes that remove barriers to, and promote such investments (including related investments in infrastructure and equipment needed to support the connection of renewable sources to the system). We will consider production increases from renewable and low carbon generation as part of the Enhanced Diligence process and assess their impact on proposed financings of certain new fossil fuel generation.
- Conventional and advanced generation. In addition to cost effective energy efficiency, renewables and low carbon distributed generation, investments in conventional or advanced generating facilities will be needed to supply reliable electric power to the US market. This may include power from natural gas, coal and nuclear technologies. Due to evolving climate policy, investing in CO2-emitting fossil fuel generation entails uncertain financial, regulatory and certain environmental liability risks. It is the purpose of the Enhanced Diligence process to assess and reflect these risks in the financing considerations for certain fossil fuel generation. We will encourage regulatory and legislative changes that facilitate carbon capture and storage (CCS) to further reduce CO2 emissions from the electric sector.
"Leading utilities and financial institutions understand that the rules of the road have changed for coal," said Mark Brownstein, managing director of business partnerships for Environmental Defense, one of the NGOs that advised with the banks in creating the Principles. "These principles are a first step in facilitating an honest assessment of electric generation options in light of the obvious and pressing need to substantially reduce national greenhouse gas pollution."
Dale Bryk, senior attorney at the Natural Resources Defense Council added, "Expectations are rising fast for this industry. Global warming is changing the competitive landscape. Clean power is the name of the game today. Conventional coal facilities are already facing intensive scrutiny. We think the serious money is increasingly going to be on clean, efficient solutions."
Power Industry Comments on The Carbon Principles
American Electric Power (AEP), Columbus, OH:
"A rational set of carbon principles to help guide energy investment strategy is vital to our nation's energy and economic future," said Michael G. Morris, Chairman, President and Chief Executive Officer of American Electric Power. "Recognizing that energy efficiency, renewables, cleaner fossil technologies and other diverse solutions all have significant roles in addressing climate challenges while maintaining economic and energy security establishes a framework for making the best decisions regarding our nation's energy future."
CMS Energy, Jackson, MI:
"The electric companies that serve America's families and businesses every day understand the need for a balanced approach to meet our country's energy needs. At CMS Energy, our objective is to provide reliable and affordable power to our customers through a prudent, environmentally responsible mix of conventional and advanced technologies that includes renewable energy and to work with customers to help them use energy efficiently. By adopting these principles, Wall Street is making an important and creative contribution to the ongoing effort to address climate change and a contribution that will be welcomed by those in the utility sector with similar concerns about the environment."
DTE Energy, Detroit, MI:
"DTE Energy is proud of its history of environmental stewardship and thus we applaud the Carbon Principles approach by leading banks recognizing that a broad range of energy solutions must be considered to address the climate change issue," said Anthony F. Earley Jr., Chairman and Chief Executive Officer of DTE Energy.
NRG Energy, Princeton, NJ:
"To move the needle on global warming, clean energy technologies need to be developed, demonstrated and deployed as quickly as possible," said David Crane, President and Chief Executive Officer of NRG Energy Inc. "Given the capital intensive nature of this challenge, we welcome these carbon principles as a sign that America's leading financial institutions are ready to support a massive increase of investment in clean energy solutions. With the support of both Wall Street and public policymakers in Washington, the American power industry can lead the way in achieving the dramatic GHG reductions that are critical to the health of both our economy and our planet."
Public Service Enterprise Group (PSEG), Newark, NJ:
"The Carbon Principles encourage all stakeholders to recognize that energy efficiency, renewables and new low-carbon power sources are all indispensable to meeting the nation's future energy needs while addressing climate change as one of the foremost policy and environmental issues of our time," said Ralph Izzo, Chairman, President and Chief Executive Officer of PSEG. "PSEG is actively pursuing this overall goal, while recognizing that our efforts must result in a reasonable cost to consumers. We hope that the Principles will contribute to the national consensus that must be reached to deal effectively with these critical issues."
Sempra Energy, San Diego, CA:
"With its mix of energy efficiency, renewable energy and clean conventional generation, the Carbon Principles echo our view that to meet future US energy needs, a balanced portfolio approach must use energy efficiency, renewable energy, and natural gas."
Southern Company, Atlanta, GA:
Southern Company, along with our regulators and other stakeholders, has and will continue to undertake extensive evaluation of all generation resources including nuclear, coal, natural gas, renewables and energy efficiency, to maintain the balanced portfolio necessary to reliably meet our customers' growing electricity needs. We regard bank due diligence as a normal part of our business and we applaud the banks for seeking input from the electricity industry as they developed the Carbon Principles.
Back
Global Community Day in the U.S South & Southeast: Helping Hands & Warm Hearts
CitiWorld, December 20, 2007
Editor’s Note: On November 17, more than 59,000 Citi volunteers, including family and friends, made a positive difference in their local communities all around the world. Check out the Global Community Day Photo Gallery and see colleagues in EMEA, Japan, Latin America and the Caribbean, Asia Pacific, and the U.S. working together.
Citi volunteers across the South and Southeast region in the U.S. truly demonstrated the meaning of Southern heart and hospitality on Global Community Day.
In Frederick, Maryland, 50 volunteers from CitiMortgage, Citi Smith Barney, and CitiFinancial, their families and friends, traveled to the Frederick Rescue Mission’s Beacon House to prepare and serve a hot breakfast and bagged 300 lunches. Other volunteers formed an assembly line to create and distribute 200 food boxes with Thanksgiving turkey dinners.
CitiMortgage’s annual Thanksgiving Food Drive for the mission this year included Smith Barney’s Frederick office, which brought the total of donations to 6,322 food items.
Said Guy Mutchler, Director of Food Services at the Frederick Rescue Mission, “Citi’s volunteers did an amazing job. Citi’s annual Thanksgiving Food Drive will go a long way in replenishing our stock of food.” CitiMortgage’s Frederick Site President Dave Lucchino said, “This year’s event brought together associates from CitiMortgage, CitiFinancial, and Citi Smith Barney to assist the Mission with one of its largest single-day food distribution events ever. The level of energy and teamwork demonstrated by employees from across our local Citi companies was fantastic.”
In Hagerstown, Maryland, 360 volunteers worked at eight events to make a positive impact throughout the area.
Led by Kelly Colbert, Operations Manager, and Sue Jelinek, Unit Manager, the team donated and delivered 3,000 pounds of food to Food Resources Inc. The week prior to Global Community Day, Citi Hagerstown employees donated 1,700 pounds of food and on November 17, volunteers set up a table at Wal-Mart and got more donations from community members.
Another team led by Public Affairs and Communications Senior Manager Cassandra Latimer painted chairs and chapel pews at Brook Lane Hospital while at the Farhney-Keedy retirement community a Citi team, led by Sales Coach Brandy Stottlemyer, shared conversation, fun, and games—with blankets and socks as prizes—with the residents. The volunteers decorated seven Christmas trees throughout the building.
More than 160 Hagerstown employees helped the South Washington County Military Support Group by writing notes on 3,000 greeting cards that will be sent to U.S. troops serving in Iraq and in Afghanistan. Some volunteers wrote cards during the breaks at work while others made it a family affair.
Hagerstown’s annual JFK 50-Mile Memorial race was supported by 60 volunteers who worked at break stations and cheered on the runners. Nine Citi employees spent the day at the Greencastle-Antrim Organized Youth Foundation. Said Dee Rider of Program Management who led the team, “We painted two large rooms, made four shadow box display cases, created a large flower bed, put up a retaining wall, and spread ten tons of stone.”
Project Share, which meets the needs of the hungry, benefited from the work of 10 Citi Hagerstown volunteers. Led by Project Analyst Kitzie Galbraith, they filled Thanksgiving bags and distributed food to more than 270 families. Galbraith said, “While we do give food to people in need, we also share kind words and a smile.”
Citi Hagerstown employees—22 in all, led by Unit Manager Cristy Smoot—showed their appreciation for the Western Maryland Hospital Center by painting halls and rooms and visiting patients.
In Louisville, Kentucky, 200 Citi Cards volunteers worked at several community events, including the annual Cerebral Palsy K.ID.S. (Kentuckiana Institute of Developmental Services) Center Fashion Show, which raises money for tuition for needy families whose children attend the center. More than 40 Citi volunteers teamed up for the organization which Citi has long supported.
Citi Cards Louisville Senior Operations Manager Rob Mitchell said, “We assisted with the 2007 K.I.D.S. Holiday Fashion Show as children from the organization sported the latest fashions. What a great way to participate in Global Community Day by showcasing these ‘shining stars.’"
There was no shortage of help in Jacksonville, Florida, as more than 200 volunteers joined forces and donated their time on one of the coldest days of the year to help seven local organizations.
Some of the favorites were the Clara White Mission, where NAO&T COO Rich Garside joined the volunteers, and the I.M. Sulzbacher Center for the Homeless, both long-standing partners of Citi. Employees, friends and family painted, sorted clothes and organized donations, including more than 2,000 cans of food collected by Citi employees.
Smith Barney organized a local food drive to benefit Second Harvest Food Bank while CitiFinancial partnered with Citi Cards at the Mandarin and Singleton Senior Centers. Volunteers took paintbrushes in hand and painted over the lime green and orange paint of the Singleton Center to bring it into the 21st century while at the Mandarin, volunteers cleared pathways, planted flowers and pruned trees.
Citi employees, friends, and families worked a solid eight hours to frame a Habitat for Humanity house for Citi-sponsored homeowner Carolyn Davis, a single retiree, while the team of volunteers in the Springfield Historical District spruced up the neighborhood, cleaning, pruning and building a playhouse for kids. Springfield Executive Director Louise DeSpain said, “Springfield has come such a long way and Citi has been a big contributor to our efforts.”
Atlanta, Georgia, was the site of more good-hearted contributions of time and talent. At Project Open Hand, 30 Citi Cards employees hit the highways to deliver meals to the elderly and homebound on a dozen different delivery routes. Employees and family members partnered up, a la “The Amazing Race,” to drive and navigate around town. While the deliveries were taking place, 12 volunteers prepared the next week's meals.
In downtown Atlanta, 10 Citi volunteers, including the head of Citi’s Home Depot division, Loren Kranz, helped construct a Habitat for Humanity house by shingling the roof, and installing siding and insulation. Members of the Citi Cards Management Association program participated in a project in Atlanta's Piedmont Park.
More than 100 Atlanta-based Primerica and Citi employees volunteered their time at the Gwinnett Children’s Shelter. The team enthusiastically set to work painting a colorful mural, completely rebuilding a staircase, helping with landscaping, and cleaning up the property.
Primerica volunteers partnered with Habitat of Humanity of Gwinnett County on the county’s October “Day of Service” to help make the home of Rhett and Tammy Davidson a reality.
In Gray, Tennessee, Citi Cards volunteers sorted and labeled tons of food collected during the Second Harvest Food Bank/Boy Scouts of America “Scouting for Food” drive. Employees from the Workforce Management and Training collected $250 and purchased 232 pounds of food for the drive. Volunteers, including Grey Site President Jeff Jones, kept up an annual tradition by decorating the local Ronald McDonald House for the holidays. Citi Cards volunteers also rang bells and collected donations for the Salvation Army.
In South Florida, the regional offices for Latin America and the Caribbean participated in two events. In Miami, 106 volunteers worked at Broadmoor Elementary School painting murals and landscaping. In Broward County, 150 employees spent the day at a local foster care center, clearing brush, planting trees, and cleaning the facility's large yard.
“Citi gets more done in one morning than any other group. I am amazed how no one wants to leave until they are done.” This comment from the site facility manager at Tampa’s Hope Children’s Home was indicative of the appreciation Citi volunteers earned during Global Community Day.
More than 500 Tampa volunteers helped 11 organizations, doing everything from working with Big Brothers Big Sisters’ children to sorting clothes at a battered women's shelter thrift shop to organizing food donations, to landscaping, painting and construction at various youth facilities.
Site President Steve Klovekorn said, “Working together with each other to make a positive impact on the community always leaves us feeling good, that was especially the feeling with the group I got to work with at the Hope Children’s Home.”
Volunteers hosted parties at the James A. Haley Veterans Hospital. “We visited 100 patients, many who have returned from Iraq and Afghanistan,” said Ron DeRenzo. “We hosted card games, bingo tournaments, breakfast, lunch, presented gift bags, and ‘meet and greets’ with the soldiers.” Cathy Williams, the hospital’s chief of Recreation Therapy, said, “Thank you, Citi, for showing you care!”
Citi Board Names Vikram Pandit Chief Executive Officer and Sir Win Bischoff Chairman
Press Release, December 11, 2007
New York – The Board of Directors of Citi today announced that it has appointed Vikram Pandit as the company's new Chief Executive Officer and member of the Board of Directors, effective immediately. Sir Win Bischoff, who has been acting Chief Executive Officer since November 4, 2007, will succeed Chairman Robert E. Rubin, who will return to his previous duties as a member of the Citigroup Board of Directors and Chairman of the Executive Committee of the Board.
Mr. Pandit was most recently Chairman and Chief Executive Officer of the Institutional Clients Group, which comprises Citi Markets & Banking and Citi Alternative Investments. Previously, he was a founding member and chairman of Old Lane, LP, a multi-strategy hedge fund and private equity fund manager acquired by Citi in 2007. Prior to founding Old Lane, Mr. Pandit held a number of senior positions at Morgan Stanley over more than two decades, including President and Chief Operating Officer of Morgan Stanley's Institutional Securities Group, which included Morgan Stanley's investment banking, fixed income and capital markets businesses.
Sir Win has had a distinguished and successful career in financial services, serving as Chairman of Schroders plc before joining Citi in 2000, with the acquisition of Schroders' investment banking business by a Citi predecessor company. Most recently, he has chaired Citi's growing businesses in Europe, the Middle East and Africa.
Mr. Rubin commented, "Vikram has earned a reputation as one of the most respected leaders in the financial services industry. The combination of his deep executive experience and long history as a strategic thinker makes him the outstanding choice to be Citi's CEO. During Vikram's time at Citi, he has come to know this company and its people, and he has earned the respect of managers and directors alike for his incisive intellect and ability to balance risk and opportunity in making and executing tough decisions. The Board is unanimous in its conviction that, as part of a new generation of executives in this industry, Vikram is the right leader to build on the exceptional strengths of this great company and take the steps necessary to lead us forward."
Mr. Rubin continued, "As a respected member of our senior team, Win brings extensive international experience that will enhance our efforts around the world. He has a keen understanding of Citi's diverse strengths, its many growth opportunities and what is needed for Citi to realize its tremendous potential. Win is an excellent addition to our Board and will be a very effective Chairman.
"Our company has tremendously talented employees, an unrivaled international franchise and plays an important and very special role in the global economy. I look forward to a long and active role at Citi," Mr. Rubin concluded.
Mr. Pandit said, "I am honored to become Citi's leader to drive the changes we need. Citi is an extraordinary institution with tremendous talent, resources and capabilities and geographic and business scope. Our challenge is to capitalize on these strengths to deliver the high-quality service and products our clients require and to generate the superior returns our shareholders expect. I will work closely with Win, Bob and Citi's Board and management to assure that our strategy, structure, scale and diversification position the company for growth. Simplifying the company's organizational structure and aligning our businesses and resources with appropriate goals and economic realities will be among our initial priorities.
"During this challenging time, Citi's role in the global markets is more vital than ever. We will address our issues head-on while continuing to deliver value for our clients, shareholders, employees and the communities in which we operate."
"I am proud to be asked to serve as Chairman at this very important time in Citi's history," said Sir Win. "This is a great company with talented and dedicated employees. I have long admired the extraordinary client relationships of this firm which are built on service and insights provided by our people with their local and global perspective. As a result of the drive and commitment of our people we have won the loyalty of our clients over many years. We have a dedicated Board, and I look forward to working with them and our experienced management team to provide active and effective support toward increasing value and returns for all Citi shareholders."
Prior to forming Old Lane, Mr. Pandit, 50, was President and Chief Operating Officer of Morgan Stanley's institutional securities and investment banking business and was a member of the firm's Management Committee. Previously, he served in various roles as head of the Equity Division, head of Derivative Sales and Trading, and Managing Director and head of the Equity Syndicate. Mr. Pandit joined the Investment Banking Division of Morgan Stanley in 1983.
Mr. Pandit serves on the boards of Columbia University, Columbia Business School, India School of Business Hyderabad, India and the Trinity School (NY). He is a former board member of NASDAQ, New York City Investment Fund, American India Foundation and the Council on U.S. Competitiveness. He earned a Ph.D in Finance from Columbia University. He also holds a Master's degree and a Bachelor's degree in electrical engineering from Columbia University. A full biography is available at http://www.citigroup.com/citigroup/profiles/pandit/index.htm.
Sir Win, 66, joined the Company Finance Division of J. Henry Schroder & Co. Limited, London, in 1966. He subsequently held positions as Managing Director of Schroders Asia Limited, Hong Kong, Chairman of J. Henry Schroder & Co., Group Chief Executive of Schroders plc and Chairman of Schroders plc.
Sir Win was a non-executive Director of Cable and Wireless plc for over a decade and subsequently Deputy Chairman. His other non-executive directorships included IFIL – Finanziaria di Partecipazioni SpA, Italy and Siemens Holdings plc. Currently, he is a Non-Executive Director of The McGraw-Hill Companies and Land Securities plc, Eli Lilly and Company, Akbank Turkey, and Prudential plc.
Citi to Sell $7.5 Billion of Equity Units to the Abu Dhabi Investment Authority
Press Release, November 26, 2007
New York – Citi announced today that it has reached an agreement to sell Equity Units, with mandatory conversion into common shares, in a private placement to the Abu Dhabi Investment Authority (ADIA), a long-term investor committed to the U.S. capital markets, in the amount of $7.5 billion. ADIA's aggregate ownership in Citi's common shares, including the conversion of these Equity Units, will total no more than 4.9% of Citi's total shares outstanding.
"This investment, from one of the world's leading and most sophisticated equity investors, provides further capital to allow Citi to pursue attractive opportunities to grow its business," said Win Bischoff, Citi's Acting Chief Executive Officer. "It builds on a series of actions we have taken over the past several months to strengthen our capital base, which have included sales of certain non-strategic assets, the issuance of trust preferred securities, and the previously announced plan to use common stock to purchase 32% of Nikko Cordial in Japan. In addition, ADIA is a significant participant in alternative investments and emerging markets financial services, two areas in which we have major positions and have been expanding.
"This investment also enables us to access capital in an efficient manner, and is consistent with our strategy of maintaining a balance sheet that benefits from highly diverse sources of funding in terms of both geography and type of security," Mr. Bischoff continued.
"Citi possesses a unique position in the financial markets throughout the world. We see in Citi a highly respected company with a premier brand and with tremendous opportunities for growth," said ADIA's Managing Director, Sheikh Ahmed Bin Zayed Al Nahayan. "This investment reflects our confidence in Citi's potential to build shareholder value."
ADIA has agreed not to own more than a 4.9% stake in Citi, and will have no special rights of ownership or control and no role in the management or governance of Citi, including no right to designate a member of the Citi Board of Directors.
Substantially all of the investment proceeds will be treated as Tier 1 capital for regulatory capital purposes. Accordingly, it will support Citi's progress toward its goal of achieving its targeted capital ratios by the end of the first half of 2008. The investment is expected to close within the next several days.
Each Equity Unit is mandatorily convertible into Citi shares at prices ranging from $31.83 to $37.24 per share. The Equity Units convert to Citi common shares on dates ranging from March 15, 2010, to September 15, 2011, subject to adjustment. Each Equity Unit will pay a fixed annual payment rate of 11%, payable quarterly. The payment rate reflects market terms based on the conversion premium as well as Citi's current dividend yield. Additional details of the Equity Units are provided in an attachment to this release.
The Abu Dhabi Investment Authority (ADIA) is a well-established, well-respected institutional investor committed to the stability of the global financial infrastructure. It is the sovereign wealth fund of the government of Abu Dhabi, one of the seven emirates that comprise the federation of the UAE.
Click here to view Selected Terms of the Upper DECS Equity Units.
Robert E. Rubin to Serve as Chairman of the Board of Citi; Sir Win Bischoff to Serve as Acting Chief Executive Officer; Charles Prince Elects to Retire from Citi
Press Release, November 4, 2007
New York – The Board of Directors of Citigroup Inc. today announced that Robert E. Rubin, Chairman of the Executive Committee of Citi and a member of the Board of Directors, will serve as Chairman of the Board.
In addition, Sir Win Bischoff, Chairman of Citi Europe and a member of Citi's Business Heads, Operating and Management Committees, will serve as acting Chief Executive Officer. The Board also announced that Charles Prince, Chairman and Chief Executive Officer, has elected to retire from Citi. The Board has designated a special committee consisting of Mr. Rubin, Alain J.P. Belda, Richard D. Parsons, and Franklin A. Thomas to conduct the search for a new CEO.
Mr. Prince commented, "We have made strong progress in our strategy for building for the future, evidenced in the momentum we have achieved in most of our businesses. Nevertheless, it is my judgment that given the size of the recent losses in our mortgage-backed securities business, the only honorable course for me to take as Chief Executive Officer is to step down. This is what I advised the Board.
"It has been my privilege to lead this powerful diversified financial services company for the past four years and to be affiliated with the directors, shareholders and employees of Citi and its predecessor companies for the past 29 years. I am proud of the significant progress we have made in rapidly building and expanding the scope of our businesses internationally, strengthening our businesses domestically, and restoring excellent relationships with our regulators throughout the world."
Mr. Belda said, "Chuck has been an extraordinarily committed leader who took on many difficult issues that needed to be addressed and strengthened Citi's position for the future. He moved the company toward its higher margin businesses, investing in areas where we have key competitive advantages. He augmented our unrivaled international franchise through groundbreaking acquisitions and partnerships, greatly improved our technology, and invested in our people. We thank Chuck for his unwavering commitment to Citi, its employees and its shareholders. Citi has extraordinary people and the Board is committed to working together with them to see that Citi realizes its tremendous potential. We are fortunate that Chuck will continue to serve the Company in an advisory capacity while a search for his replacement is underway."
Mr. Rubin said, "The Board and I have tremendous respect for Chuck's leadership and his accomplishments over the years in helping to develop the Company's culture and direction and honing its formidable competitive advantages. Citi is a unique global institution with a strong capital base, industry-leading businesses and above all, tremendously talented employees, who are our most important asset. I intend to work closely with the Board, Win, and the operating and executive leadership to maintain the momentum of our business. We will continue to focus on taking the steps necessary to help our employees realize their full potential, serve our customers with distinction, and build superior value for all of our shareholders.
"We intend to complete our search for a new CEO as expeditiously as possible, reviewing qualified CEO candidates from outside as well as within our organization. In the interim, we have in Win an acting CEO who has had a distinguished and successful career in the financial industry, serving as Chairman of Schroders plc before joining Citi in 2000 with the acquisition of Schroders' investment banking business by a Citi predecessor company. Most recently, he has chaired our growing businesses in Europe, the Middle East and Africa.
"In addition, a new unit, the sole focus of which will be on managing the assets related to sub-prime mortgage securities and their resultant exposures, has been established. This unit will be separate from the other parts of our capital markets and banking business," Mr. Rubin said.
"As Acting CEO, I am pleased to be able to draw on the talents of our distinguished and committed Board and experienced management team. Together, we will see that our current plans are effectively executed and will continue to consider new ways to strengthen and grow our businesses," Sir Win said.
Citi Strikes Gold with New “Green” Office Tower
Press Release, October 22, 2007
New York – Today Citi announced that it has reached a significant milestone in its “green” building program by earning a Gold Leadership in Energy and Environmental Design (LEED) certification for the first time. The prestigious designation from the U.S. Green Building Council was awarded in a ceremony today at Citi’s newly constructed, 15-story skyscraper at Two Court Square, Queens, New York. The office tower, which opened in August, is home for 1,500 employees.
Citi has committed to achieving environmental certification globally (LEED in the United States) for the construction of all new office buildings and operations centers and evaluation of existing larger facilities. This is a critical part of Citi's pledge to embed eco-friendly practices into its everyday business and reduce greenhouse-gas emissions by 10% by 2011 at its more than 14,500 facilities worldwide. Citi also expects to open LEED-certified retail branches in 2007.
“By taking this step, Citi demonstrates its leadership in sustainability and as an early adopter, Citi is making it easier for others to follow,” said Russell Unger, Executive Director, New York Chapter, U.S. Green Building Council. “This is a major accomplishment for Citi and helps build momentum for green building in New York.”
The building’s eco-friendly features include:
- Purchase of certified green wind power that will provide 100% of the building’s energy load for the next five years. This is equal to 38,500 MWH of energy use, resulting in zero carbon footprint.
- Avoidance of 768 tons of carbon dioxide emissions through the use of high-performance window glazing; energy-efficient lighting and air-conditioning systems; lighting controls; and office occupancy sensors.
- Workstations, carpeting and furniture made from recycled materials and/or through eco friendly manufacturing processes.
- Views to the outside for 90% of cubicles, offices and conference rooms.
- Approximately 90% (4,590 tons) of structural steel contains post-consumer recycled content.
- Conserving two million gallons of water per year through efficient plumbing fixtures and a storm-water recycling system that captures rain water in a retention tank for use in cooling towers and for all site irrigation.
- An indoor bicycle rack for employees.
- During construction, more than 90% of the waste was recycled and diverted from landfills.
Citi Gives to the Local Community
During the ceremony, with water from the building’s innovative rain water collection system, Citi officials, Unger, and New York elected officials, symbolically watered eight evergreen trees that will be donated to the New York City Department of Parks and Recreation in Queens for replanting in Queensbridge Park.
Citi also announced that it has partnered with RelightNY and the New York City Housing Authority to donate 9,672 energy efficient compact fluorescent bulbs to the residents of Queensbridge South Houses.
Sustainability Extended
Citi unveiled a new enterprise-wide initiative as part of its commitment to integrate eco-friendly practices into its everyday business. Citi’s new Sustainable IT program engages its global technology organization to focus on issues of power management, paper and travel substitution, as well as responsible asset management. The program kicked off a three-week collection drive today, in partnership with the Mayor's Office to Combat Domestic Violence and the Verizon Wireless HopeLine® program, asking area employees to donate no-longer-used wireless phones and hand-held devices. During Citi’s Global Community Day on Nov. 17, the wireless equipment will be cleansed of data and sent for refurbishment or recycling in an environmentally sound manner. Proceeds will benefit area agencies that combat domestic violence.
“At Citi, we are banking on green. For us, it is an important part of being a responsible corporate citizen,” said Pam Flaherty, Director of Corporate Citizenship and President and CEO of the Citigroup Foundation. “Our approach is to embed sustainable business practices throughout our operations all over the world.”
What is LEED?
LEED certification is the benchmark for “green building” in the U.S. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection, and indoor environmental quality.
In May, Citi announced a $50 billion commitment over the next 10 years to address global climate change, including $10 billion toward real estate. The company has also partnered with the Clinton Climate Initiative, a project of the Clinton Foundation, to retrofit older buildings and reduce energy usage. Citi committed $1 billion and will provide expertise and financing for the first generation of projects in this landmark program.
Citi Forms Institutional Clients Group
Press Release, October 11, 2007
Vikram Pandit to Lead New Group, Comprising Markets & Banking and Alternative Investments
New York – Citi announced today the appointment of Vikram Pandit, 50, as Chairman and CEO of the newly formed Institutional Clients Group comprising Citi Markets & Banking (CMB) and Citi Alternative Investments (CAI). He will continue to report to the Office of the Chairman. Pandit, who retains his title as Chairman of CAI, remains a member of Citi’s Business Heads, Operating and Management committees. The appointment is effective immediately.
Michael Klein continues as Chairman and co-CEO of Markets & Banking. Since joining Salomon Brothers in 1985, Mr. Klein has held a number of increasingly important positions throughout the company, including CEO of Global Banking and CMB CEO of Europe, Middle East and Africa. He remains a member of Business Heads, Operating and Management Committees.
James Forese has been named co-CEO of Markets & Banking. Mr. Forese, a 22-year veteran of the company, has led the CMB’s Global Equities division for the last four years. He remains a member of the Operating and Management Committees. Previously, he held senior positions in Fixed Income both in New York and in London. Mr. Klein and Mr. Forese both report to Mr. Pandit.
John Havens has been named President and Chief Executive Officer of CAI. Guru Ramakrishnan remains President and Chief Executive Officer of Old Lane. Both report to Vikram Pandit, and remain members of the Management Committee.
“This new operating structure will enable us to continue to use our capital actively but in a more efficient way, keep moving towards higher margin businesses, continue to diversify our sources of business, and employ world class talent that has a relentless focus on serving our clients. We have made substantial progress towards these goals. Vikram Pandit is the right person to lead our effort to accelerate that progress,” said Charles Prince, Chairman and CEO.
Tom Maheras is leaving Citi to pursue other interests. “Tom Maheras began his career with the legacy firm Salomon Brothers and over the last 23 years has made extraordinary contributions to our company,” Mr. Prince said. “He has been a great partner and friend. We wish him the very best.”
Mr. Pandit was a founding member and Chairman of the Members Committee of Old Lane, LP, a multi-strategy hedge fund and private equity fund manager that was acquired by Citi in 2007. Prior to forming Old Lane, Mr. Pandit was President and Chief Operating Officer of Morgan Stanley’s institutional securities and investment banking business and was a member of the firm’s Management Committee.
Expedia Expands Partnership With Citi for Credit Cards
RTTNews Global Financial Newswires, September 28, 2007
Online travel agency Expedia.com, an operating company of Expedia Inc. (EXPE), announced the expansion of its partnership with Citigroup Inc. (C) with the launch of the new Citi PremierPass / Expedia.com Card. Expedia said the cardmembers who book travel with the card will get the benefits of the Citi PremierPass Card and also earn ThankYou Points, which can be redeemed for rewards. Separately, Expedia Corporate Travel, or ECT, a travel management company, announced plans to launch full-service travel offering in Spain.
The partnership of Citi, a financial services company and the world's largest provider of credit cards, with Expedia started nearly a year before, with the unveiling of ThankYou Rewards Network on Expedia that attracted more than one million customers.
Expedia said those cardmembers who book travel with the card will get the benefits of the Citi PremierPass Card. Expedia.com as well as Kiplinger's Personal Finance Magazine has named the Citi PremierPass Card as the ‘Best Airline Rewards Card'.
Terry O'Neil, Executive Vice President, Citi Cards noted that its expanded relationship with Expedia and the new Citi PremierPass / Expedia.com Card provides accelerated earning potential to Expedia and Citi customers who acquire the card and book their travel through Expedia.com.
According to Expedia, travelers earn ThankYou Points with the new Citi PremierPass / Expedia.com Card, for everyday purchases made with the card. They also will earn additional points for eligible travel booked on Expedia.com, and points for the miles they fly on any airline.
The company noted that with the no-annual fee Citi PremierPass / Expedia.com Card, card members will earn up to 3 points for every $1 spent on Expedia transactions, one point for every 3 miles flown on any airline, and one point for every $1 spent on all purchases. The card members also will get a $50 statement credit after first eligible purchase on Expedia.
Further, Expedia noted that card members at the Elite level, for an annual fee of $75, will earn up to 3 points for every $1 spent on Expedia transactions, 2 points for dollars spent at supermarkets, drug stores, gas stations, and commuting and parking merchants, 1 point for every 1 mile flown on any airline, together with complimentary domestic companion travel. They will also get a $100 statement credit after the first eligible purchase on Expedia.
Card members can redeem their ThankYou Points for rewards, including any flight available on Expedia at any time, any seat, with no black-out dates, also merchandise, gift certificates, golf passes, movie certificates and more.
The Citi PremierPass / Expedia.com card members also will receive additional benefits, including easy access to Citi's free industry-leading credit education program, free and secure online account management, auto rental insurance, emergency travel assistance, lost Luggage insurance, no pre-set spending limit, together with travel accident insurance.
Paul Brown, President, Expedia North America, commented, “We heard from our customers that they want a way to earn points for all of their travel and across travel brands. They also want the ability to redeem their points for travel when they want, without blackout dates. This card does all of that, and we believe it significantly enhances the value of ThankYou Network on Expedia.”
Citi Presents $2 Million Citi Foundation Grant to Habitat for Humanity International
Press Release, September 26, 2007
Employee volunteers and grant will support the 2007 Jimmy Carter Work Project in Los Angeles to build and repair 100 homes with families in need
New York – Citi today presented Habitat for Humanity International (HFHI) with a $2 million grant from the Citi Foundation. The grant supports a number of community activities in the United States, including, the 2007 Jimmy Carter Work Project (JCWP). Since 1984, former President Jimmy Carter and former First Lady Rosalynn Carter donate a week of their time to help build Habitat for Humanity (HFH) homes and raise awareness of the critical need for affordable housing. The JCWP focuses on providing quality, affordable housing to families in need. This year, the JCWP will be held from October 28 to November 2 in Los Angeles, Calif.
Kevin Kessinger, Citi's chief operations & technology officer, presented the grant to Jonathan Reckford, CEO of HFHI, at a recent event in New York City. Kessinger, who is also a member of the HFHI's board of directors, will volunteer with other Citi leaders and employees at the JCWP for the second year in a row. Citi's employee volunteers will come from eight countries, including the United States, and from across the company's business units.
"Citi has a long-term relationship with Habitat, as their mission to providing affordable housing ties in so neatly with our commitment to creating opportunities for home ownership," said Kessinger. "Our employees have always given of themselves as well, so generously, in volunteering for builds around the world, making a difference in the community because they are there."
The Citi Foundation has given HFHI more than $22 million since 2000. Citi and the Citi Foundation have donated additional funds to support HFHI affiliates in communities around the world. In addition, through the "Citi Builds Communities" program launched in the United States in 2000, more than 22,000 Citi employees have volunteered 230,000 hours to help to build more than 230 homes in 40 locations across the country.
"Citi has been a long-standing partner with Habitat for Humanity and has demonstrated strong corporate citizenship by supporting not only a number of Jimmy Carter Work Projects, but many other Habitat efforts around the world," said Reckford. "We're so grateful for the friendship they continue to show, and we always welcome the opportunity to work with Citi in the communities where they live and operate."
Citi also is one of the largest investors in HFHI's non-profit mortgage program for Habitat partner families.
Citi has participated in previous Jimmy Carter Work Projects in India; Mexico, Detroit, Mich.; New York, N.Y.; and Valdosta, Ga.
Citi to Purchase Assets of ACC Capital Holdings Wholesale Mortgage Origination & Mortgage Servicing Business
Press Release, August 31, 2007
New York, NY – Citi today announced that its Markets & Banking business has agreed to purchase the wholesale mortgage origination and mortgage servicing assets from ACC Capital Holdings (ACH) in a transaction scheduled to close on September 1, 2007. Citi secured the option to acquire these assets in February 2007 as part of its agreement to provide working capital to ACH and become ACH’s primary warehouse lender. The acquisition, which was finalized late this afternoon, will include the purchase of servicing rights on $45 billion of loans, as well as a minimal amount of existing loans and residuals. The financial terms of the transaction were not disclosed.
"Exercising our option to acquire the assets from ACH's wholesale origination and servicing business allows Citi to secure valuable and scalable platforms in a market undergoing significant change," said Jeffrey A. Perlowitz, Head of Global Securitized Markets in Citi's Fixed Income, Currencies and Commodities unit, where the assets will reside. "Through this acquisition, we gain important operational and pricing efficiencies and the ability to extend the high lending standards of our existing residential mortgage business from point of origination through securitization and servicing."
Citi will apply its industry-leading best practices in real estate lending to loan products originated from the newly acquired platform and expand its ongoing effort to help distressed borrowers.
The assets being acquired by Citi are part of the wholesale origination and servicing businesses of ACH with operational centers in Orange and Rancho Cucamonga, California, and Rolling Meadows and Schaumberg, Illinois, as well as a broker network extending across 48 States.
Citi Increases GMAC’s Loan Fund to $21.4 Billion Amid Market Turmoil
By Randall Smith
The Wall Street Journal Online, September 12, 2007
GMAC LLC, the financing affiliate of General Motors Corp., obtained a $21.4 billion asset-backed loan facility from Citigroup Inc. to bolster its finances amid unsettled credit-market conditions.
Although the new credit line replaces a smaller $10 billion loan facility, its term of about one year appears to be shorter than the line it is replacing, which had two years remaining. The new line may be renewed, however.
A spokeswoman for GMAC, which had $6.5 billion in asset-backed commercial paper secured partly by mortgages outstanding as of June 30, said the credit line is “a prudent measure to bolster our financial flexibility as a result of what’s happening in the market now.”
Some issuers of asset-backed commercial paper, which are short-term IOUs, have had difficulty selling such debts when backed by mortgage assets, whose values have been rocked by rising defaults among subprime borrowers.
Detroit-based General Motors sold a 51% stake in GMAC last year to an investor group led by Cerberus Capital Management, a private-equity investment firm in New York. The investor group also includes Citigroup.
In an announcement late yesterday, GMAC said Citi agreed to replace the $10 billion credit facility with the new commitments totaling up to $21.4 billion “to provide funding for U.S. automobile related assets, mortgage assets and other assets across GMAC and its subsidiaries.”
GMAC can tap $14.4 billion of the new loan once the credit pact is final, and an additional $7 billion “if certain conditions are met,” the announcement said. Only $1.8 billion of the existing credit was outstanding as of the end of August, according to a person familiar with the new line.
GMAC reported a first-half loss of $12 million, with its results dragged down by a $1.17 billion loss in its ResCap mortgage finance operations.
Robert L. Ryan Joins Citi Board of Directors
Press Release, July 24, 2007
New York – Citi announced today that Robert L. Ryan, 64, the retired Chief Financial Officer of Medtronic Inc., has been elected to the Citi Board of Directors. Mr. Ryan's election brings the number of Citi Board members to 15, of whom more than 75% are independent under NYSE rules and Citi's Corporate Governance Guidelines.
"We are very pleased to welcome Bob, a veteran senior financial leader who brings extensive management experience with driving growth at large organizations," said Charles Prince, Chairman and Chief Executive Officer, Citi. "Bob has served as a CFO for more than 21 years and offers a unique and important perspective as we continue to advance the company's international footprint and allocate capital to the best available opportunities."
As Senior Vice President and CFO of Medtronic, Mr. Ryan led the company's finance function for more than 12 years as the company experienced significant growth. He retired from Medtronic in 2005. Prior to joining Medtronic, he served as CFO for ten years for the Union Texas Petroleum Corporation. From 1975 to 1982, he worked for Citibank, including five years as the Head of the Media Lending Department. From 1970 to 1975 he was a Management Consultant with McKinsey & Company.
Mr. Ryan is a member of the board of directors of the following companies: The Black and Decker Company, General Mills, Inc., Hewlett-Packard Company, and UnitedHealth Group Incorporated. He was awarded a bachelor's degree in electrical engineering from Wayne State University in 1966, a master's degree in electrical engineering from Cornell University in 1968, and a master's degree in business administration from Harvard University in 1970.
Mr. Ryan is a Trustee of Cornell University and also serves on the Visiting Committee of the Harvard Business School.Atheros to Present at Citi Global Technology Conference Sept. 5
CNNMoney.com, August 26, 2007
SANTA CLARA, Calif. – Atheros Communications, Inc., a leading developer of advanced wireless solutions, today announced that Craig Barratt, president and chief executive officer, will present at the Citi 14th Annual Global Technology Conference on Wednesday, Sept. 5, at the Hilton New York Hotel.
The presentation is scheduled for 1:45 p.m. Eastern time and will be webcast live via the investor relations section of the Atheros website at http://www.atheros.com.
About Atheros Communications, Inc.
Atheros Communications is a leading developer of semiconductor system solutions for wireless communications products. Atheros combines its wireless systems expertise with high-performance radio frequency (RF), mixed signal and digital semiconductor design skills to provide highly integrated chipsets that are manufacturable on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is being used by a broad base of leading customers, including personal computer, networking equipment and consumer device manufacturers. For more information, visit http://www.atheros.com or send email to info@atheros.com.
Citi Buy Gains Steam
Long Island Business News, August 20, 2007
EU regulators cleared U.S.-based Citigroup on Monday to take over Nikko Cordial, the biggest ever acquisition for a foreign company in Japan.
The European Commission, which also regulates international deals that could affect commerce in Europe, approved the deal automatically after identifying no antitrust concerns and receiving no complaints from rivals.
Citigroup Inc. spent about $10 billion to acquire Nikko Cordial Corp., Japan's third-largest brokerage.
Nikko Cordial became embroiled in an accounting scandal last year that eventually forced its chief executive and chairman to resign and dealt a heavy blow to the brokerage's business.
Analysts said the deal was complementary because Citigroup, which has been relatively weak in Japan, can gain a strong presence through Nikko Cordial, which has more than 100 branches nationwide.
Citigroup Names Weir CEO of EMEA Global Wealth Management Operations
CNNMoney.com, August 13, 2007
By Colin M. Kellaher
Citigroup Inc. (C) Monday said it named Catherine Weir chief executive of its global wealth management business in the Europe, Middle East and Africa region.
Citigroup said the business in the region is currently managed as two distinct business groups - Europe and Middle East - managed by Marianne Hay and Akbar Shah. The company said Weir will manage the businesses as a combined unit from Sept. 1, based in London.
Hay is leaving the company to pursue other opportunities, while Shah is moving to the division's Asia-Pacific region to manage its Mega Wealth unit.
Weir is currently managing director and head of Citi Markets & Banking for ASEAN, covering Singapore, Malaysia, Brunei, Indonesia, the Philippines, Thailand and Vietnam. She is also Citi country officer for Singapore and a member of the Citi management committee.
Citigroup also said it named Samir Raslan, currently head of investments for global wealth management Asia Pacific, to be the head of its Central & Eastern Europe, Middle East and Africa business, reporting to Weir.
Citi Reports Record Income from Continuing Operations of $6.2 Billion, Up 18%
Press Release, July 20, 2007
Citi & Quiñenco Establish Partnership in Holding Company of Banco de Chile
Press Release, July 19, 2007
Smith Barney Joins Citi’s ThankYou Network Rewards Program
Press Release, July 12, 2007
ThankYouSM Network Advances Rewards Programs to Another Level, Offers Fine Art in Its Reward Collection from World-Renowned Artist Peter Max
PR Newswire, May 16, 2007
In an effort to continuously bring its members the most unique and compelling reward offerings available, ThankYou Rewards Network today announces the beginning of a special relationship with world-renowned artist Peter Max. As the first artist associated with ThankYou Network, Peter Max makes his popular artwork accessible to all 11 million ThankYou Members, including limited edition lithographs.
"I am very pleased to make my artwork accessible to people who previously weren't able to purchase one of my pieces," states Peter Max. "Now through ThankYou Network, members will have the chance to redeem their points for some of my most popular work."
With paintings on exhibition in hundreds of museums and galleries worldwide, Peter Max and his vibrant colors have become a significant part of contemporary culture. Peter Max has been referred to as a Pop icon, Neo Fauvist, Abstract Expressionist and America's "Painter Laureate" — having painted for the last six U.S. Presidents. In addition to his work on canvas, Peter Max's most recent visions have been seen on a Boeing 777 Continental Airlines jet, across a 600-foot stage for Woodstock Music Festival, on the covers of the Verizon New York City yellow and white pages, and on a giant mural unveiled at the 2002 Winter Olympics. He has been designated Official Artist of five Super Bowls, six Grammy Awards, World Cup USA, The World Series, The United Nations Earth Summit, and numerous other events.
"We are so excited to have the art of Peter Max — who is not only a critically-acclaimed artist, but also someone who has enjoyed broad popular appeal throughout his storied and prolific career — as part of the ThankYou Network rewards collection," said Nancy Gordon, Executive Vice President, ThankYou Network. "This relationship follows through on our long-standing commitment to our members to continually provide them with exciting and unique reward opportunities that can be appreciated and valued for a lifetime. Now our members can use their ThankYou Points to become art collectors. From Peter Max posters, limited-edition prints or custom portraits, there is a reward option for everyone."
As a result of ThankYou Network's relationship with Peter Max, members can now redeem points, starting at the 32,200 point level, for fine art to begin or expand their own collection. Members can browse the Peter Max collection on the online gallery at http://www.thankyou.com/ which features a range of 18 pieces spanning the past four decades and includes:
- 2 original works painted in acrylic on canvas
- 10 signed lithograph prints
- 6 posters signed and dedicated to the recipient by Peter Max
In addition, members with high point levels can take advantage of an exceptional and very limited premium reward opportunity — where they can redeem their ThankYou Points to have Peter Max paint a custom portrait of their dreams.
ThankYou Network's relationship with Peter Max was facilitated by The Erlick Group, a New York-based agency that represents leading cultural and entertainment properties.
Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citi's trademark red arc include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at http://www.citigroup.com/ or http://www.citi.com/.
ThankYou Network
Founded by Citi, ThankYou Network is a free rewards program that lets members earn points from a growing network of places and pool these points into one ThankYou Member Account. Members get points for using participating Citi credit cards, banking at Citibank with an eligible checking account and booking qualified travel on Expedia.com. Members can reward themselves with almost anything — from travel, brand-name goods, and gift cards at favorite stores, to unique experiences and charitable donations at http://www.thankyou.com/
Citi Commits $1 Billion in Joining Clinton Climate Initiative
Institution Will Finance Energy-Saving Retrofits of Buildings in Major Cities
Press Release, May 16, 2007
Citi today announced that it is committing $1 billion to the Clinton Climate Initiative (CCI), a project of the Clinton Foundation, to implement the new Energy Efficiency Building Retrofit Program in partnership with large city governments. Citi will provide expertise and financing for the first generation of projects in CCI's landmark program aimed at significantly reducing energy use in public and private buildings, which are responsible for between 50 percent of greenhouse gas emissions in most cities and over 70 percent in large cities, including New York.
Citi includes several business units that have been serving public sector clients in this arena for more than two decades and, accordingly, bring significant knowledge to these efforts. Citi's commercial finance and leasing unit, CitiCapital, will work with cities and private building owners to significantly reduce their energy use and greenhouse gas emissions by retrofitting existing buildings with energy efficient products and technologies, which can reduce energy use by 20 percent to 50 percent. Citi is also the market leader in municipal bond underwritings, proceeds of which can be used to retrofit public buildings and related activities.
"Climate change is a global problem that requires local action," said President Bill Clinton. "The businesses, banks and cities partnering with my foundation are addressing the issue of global warming because it's the right thing to do, but also because it's good for their bottom line. They're going to save money, make money, create jobs and have a tremendous collective impact on climate change all at once. I'm proud of them for showing leadership on the critical issue of climate change and I thank them for their commitment to this new initiative."
"We are excited to join the CCI Energy Efficiency Building Retrofit Program as a founding financial partner and welcome this opportunity to share our expertise and other resources to help cities around the world reduce greenhouse gas emissions," said Steven Freiberg, Co-Chief Executive Officer of Citi's Global Consumer Group.
"Today's $1 billion commitment to CCI is part of Citi's efforts to target some $50 billion over the next decade to address global climate change. Given that buildings are the largest users of energy in urban areas, this expanded retrofit program through CCI promises to provide significant reductions in energy usage and greenhouse gas emissions from the participating cities," Mr. Freiberg added.
Citi's participation in the CCI effort builds on its extensive "green" project financing and investments already underway, as well as the company's efforts to make its own operations environmentally friendly. Citi has committed to reduce its environmental footprint and has pledged to a 10 percent reduction in its own greenhouse gas emissions by 2011.
Citi, through its CitiCapital unit, has developed an expertise in financing retrofit projects for more than 25 years, providing hundreds of millions of dollars of financing to such projects. It is a leader in municipal lease financings, with operations in North America and in every U.S. city involved in the CC] program. CitiCapital has implemented existing energy retrofit financing programs with municipalities and not-for-profit organizations in CCI targeted cities, including the Regents of the University of California in San Francisco as well as more than 30 municipal buildings in the City of New Orleans, LA, the State of Utah Department of Corrections in Salt Lake City, and Austin Community College in Austin, Texas.
In addition, CitiCapital is more than doubling its own commitment to facilitating the reduction of carbon-gas emissions and promoting sustainability by 2010. Its CitiCapital Energy Finance Unit has an existing portfolio of over $1 billion from underwriting energy efficiency upgrades for universities, local school districts, and various municipalities in the U.S., allowing clients to amortize the cost savings of improvement over a 15- to 20-year period generally without capital outlays.
Citi has long been active on environmental issues as evidenced by its initial and ongoing leadership in the development of the Equator Principles, which established best practices for assessing and mitigating social and environmental risks in project finance. Citi has also called for the development of global and U.S. frameworks that will help reduce greenhouse gas emissions, drive innovation and opportunity, bring clarity and certainty to the markets, and achieve a level playing field.
Citi's stock is part of the Dow Jones Sustainability Index and FTSE4Good, both of which acknowledge leadership in setting standards in sustainable growth and in demonstrating exceptional environmental, social, and economic performance.
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.
Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission.
Citi Targets $50 Billion Over 10 Years to Address Global Climate Change
PRESS RELEASE, May 8, 2007
Citibank Celebrates Opening of Bonita Springs Financial Center
PRESS RELEASE, May 5, 2007
Citi Unveils Global Brand Advertising Campaign
Press Release, May 7, 2007
Around the World, Citi Says to Clients “Let’s Get it Done”
New York – Citi, the leading global financial services company, announced the launch of its new global, corporate brand identity advertising campaign. The new integrated media campaign, with the theme “Let’s Get it Done,” debuted in major broadcast, print and online media around the world over the weekend of May 6 and 7. In addition to the new tag line, the campaign makes strong use of Citi’s symbolic red arc, which serves as a visual metaphor for connecting human aspirations to realities.
The ads, featuring scenarios such as buying a house, merging a company and graduating from college, show that Citi is ready to help companies, organizations and individuals achieve their financial dreams and goals. An underlying theme of the campaign is that Citi’s outstanding array of financial products and services can drive its clients towards financial success.
“At Citi, our clients always come first,” said Charles Prince, Citi chairman and CEO. “We are passionate about making a positive difference in the lives and futures of millions of people, organizations and communities around the world, and we wanted our corporate brand advertising to demonstrate our commitment to that.”
“In talking with our clients, from large companies to individuals, we found people strongly believe a financial services company can help them achieve success,” Prince said. “But they said it was very important that it be done ‘with’ them and not ’for’ them – they want a skilled financial partner to be with them in the driver’s seat. That’s the message we want reflected in this campaign.”
The advertising has been customized to appeal to different markets and cultures in a variety of languages. Kicking off the campaign, Citi’s new television ads first premiered in Sydney, Australia on Sunday, May 6 at 8 PM on leading channels. Then, the advertising followed time zones to run at 8 PM in Singapore, Hong Kong, Seoul, Mumbai, Moscow, Germany, London, Sao