
Citigroup
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 that it would split into two entities.
Citi also played a part in other financial scandals of the early 2000s, including Enron and WorldCom.
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