Citigroup on Monday said it will repay $20 billion bailout money to the US government, a move that will ease strict government regulations on the financial services provider.
The Vikram Pandit-led Citi would expand its public exchange offer to raise the additional $5.5 billion capital, it said on Thursday. The move would help the entity to boost the capital without additional Federal funds or conversion of the government's securities into common shares.
India-born Vikram Pandit led world's biggest bank Citigroup is planning to overhaul its bonus system, aimed to increase co-operation and minimise in-fighting among disparate parts of the conglomerate, a media report said.
Besides, the Vikram Pandit-led bank has hinted at further job cuts in the coming days, after already having cut down or announced plans to bring down its workforce to below 3,00,000 employees from more than 3,75,000 at the end of 2007. In an internal mail to all its employees in the US, Citi's human resources head Paul McKinnon said on Monday that it would eliminate some 'supplemental severance payment' for the employees with 10 or more years of service.
Citibank has regained its top position after slipping to the second slot behind Bank of America in the previous rankings released in December 2007, compiled by global mobile and internet performance solutions provider Keynote Systems. Bank of America has slipped to the second position in the latest rankings released late last night and is followed by Wells Fargo and Chase at third and fourth ranks, respectively.
An influential Democrat senator has asked the government to stop Vikram Pandit-led Citigroup from buying a new corporate jet for $50 million, as the bank is dependant on American taxpayers' money and the plane is also being bought from a foreign firm.
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