Results tagged “citibank”

Beginning in February, Citibank will start charging all account holders $7.50 each time their monthly balance dips below $1,500. In a move the Post dubs "Really Citi Treament," the bank will stop waiving low balance fees for customers who have direct deposit or conduct two bill payments online each month. According to Citibank, it's not punishment but a reward: "We did so to make them more simple and straightforward, by recognizing and rewarding customers for maintaining their balances with Citibank." But a Citibank manager acknowledged the fees — which could total $90 per year — were high, "Some are regular working folk who are trying hard to make ends meet and to pay their bills. Fifteen hundred dollars is a lot of money. Many don't have that kind of balance in their accounts."

New York investor Hassan Nemazee, whose prolific political fundraising for Democrats like Bill Clinton, Hillary Clinton, Barack Obama and Charles Schumer, was released on $25 million bond yesterday. Nemazee is " accused of lying about his assets to obtain a $74 million loan from Citibank." The NY Times further explains, he "orchestrated the fraud by using forged documents showing that he held accounts with collateral worth hundreds of millions of dollars," but the accounts never existed or were closed. Nemazee did end up paying the money back to Citibank on Monday, but was arrested on Tuesday. He is under house arrest—monitoring device plus no computer or Internet access—at his Upper East Side duplex, which the Daily News says is worth $20 million (that plus his $8 million Katonah estate are what's securing his bond). Vice President Joe Biden, Rep. Carolyn Maloney and Sens. Barbara Boxer, Chris Dodd and Schumer told Politico they plan to return his donations. Time has a 2-minute look at Nemazee.

Hey, it's a twist on the Nigerian scam! The U.S. Department of Justice said that a Nigerian national apparently successfully convinced Citibank to transfer money—over $27 million— from the National Bank of Ethiopia into accounts controlled by him and his associates. Luckily, the many of receiving accounts were unable to accept the transfers and the banks alerted Citibank.

The Big Apple Circus is an institution. So is the New York Stock Exchange. But given these times, was it appropriate for Grandma the Clown to ring the opening bell? (Video here.) Dealbreaker says yes, "Granted, it probably would've been more fitting for a manufacturer of ball gags and executioner's masks to ring the bell, but this works, too." In other news, the Wall Street Journal reports, "Citigroup is handing out pink slips to at least 10,000 employees" in another round of layoffs--plus raise interest rates on credit cards. T.G.I.F.!

After claiming it should still be allowed to purchase--with the help of the government-- Wachovia for $2 billion, Citigroup is now allowing Wells Fargo buy Wachovia for $15 billion. Wachovia issued a statement saying, "We're pleased Citigroup has abandoned its efforts to interfere with Wachovia's planned merger with Wells Fargo. We look forward to completing our merger with Wells Fargo, which we have always believed is in the best interest of shareholders, employees, creditors and retirees as well as the American taxpayers, and it imposes no risk to the FDIC fund." Of course, Citigroup is still suing for $60 billion in breach of contract damages!

Attorney General Andrew Cuomo announced that Citigroup will buy back $7 billion worth of auction-rate securities from almost 40,000 customers. The auction rate market collapsed in February, and investors were left unable to sell them. Cuomo said, "Today’s settlement sends a resounding message to the entire auction rate securities industry: this type of deceptive behavior will not be tolerated." Citibank must buy back the securities by November 5 of this year; the company will also pay a $100 million fine for misleading investors.