Central Problem:

Citigroup Inc. failed to implement Corporate Good Governance among its core Strategic
Business Units (SBUs) resulting to mismanagement, unethical business practices, legal
liabilities, ineffective risk control, lack of transparency and failures to comply with regulatory
procedures in its business dealings.

Supporting Evidences

1. In December 2014, US Senator Elizabeth Warren took the Senate Floor and gave a
privilege speech about the unethical business undertakings of Citigroup Inc. She
identified Citigroup for causing economic problems in the US costing millions of
Americans their jobs and homes. She further elaborated that the company used half a
trillion dollars of taxpayers’ money for Congress lobbying and pointed out that several
economic advisers of Presidents Bush and Obama were formerly connected with
Citigroup.
2. Citigroup failed to comply with Federal Reserve stress tests in 2012 and 2014 due to its
Merger and Acquisition (M&A) transactions which eventually ended in divestments
causing income losses.
3. Citigroup’s involvement to various scandals, business malpractices, unethical
transactions and government bailouts using taxpayers money proved that the bank is
mismanaged.
4. Shifting strategy from selling assets to cutting costs from its Citi Holding subsidiary to
avoid exposure and scrutiny from regulators and stakeholders.
5. Incurred huge amount to cover legal and restructuring costs which were associated with
investigations into currency trading, manipulation of key interest rate and anti-money
laundering related probes.
6. Reduction of the bank’s employees and physical branch offices worldwide.
7. Falsification of invoices, involvement in fraud with regards to oil services firm
Ocenografia.
8. Based on the provided organizational chart of Citigroup, the widely dispersed operations
worldwide may have caused the organization harder to manage like for instance full
autonomy given to transactions involving oil services contract for Citigroup in Mexico
that involved fraud.

Time Context

2014

View Point
The Company’s stakeholders