Citigroup, operating as Citi, is a major financial services company based in New York City. The company is the most dramatic example of how banking deregulation both succeeded and failed. Formed by the 1998 merger of Citicorp and Travelers Group, at its peak the company employed over 332,000 people around the world and held over 200 million customer accounts in more than 100 countries.
Citi suffered massive losses after the subprime mortgage securities bust, turning to outside sources such as the Abu Dhabi Investment Authority and the government of Singapore for a $20 billion capital infusion. In the fall of 2008, it was forced to accept two bailout payments from the U.S. federal government. Nevertheless, rumors of insolvency and possible nationalization continue to haunt the company. Its stock plunged to below $2 in mid-February, 2009. (It lost nearly 85 percent of its value in 2008).
In January 2009 Citi announced the resignation of senior advisor Robert Rubin, along with the division of the bank into two entities, with the sale of Smith Barney (the bank's "crown jewel" brokerage business) to Morgan Stanley. The announcement was widely interpreted as signalling the end of an era of striving to be a giant global financial supermarket.
Citi also played a part in other financial scandals of the early 2000s, including Enron and WorldCom.