Citigroup, from the years 2007 through 2008, went through a heavy financial crisis. Citigroup is and was (during 2007) a popular stock alongside big names such as J.P. Morgan Chase & Co. and Goldman Sachs. This page will discuss the events of the 2007-2008 Citigroup crisis, offer recent news, and a history of Citigroup itself.

The Citigroup crisis began with a sub-prime mortgage crisis during 2007, which is a financial crisis in the mortgage market after a dramatic increase in hedge funds, collapsed mortgage lenders, and mortgage foreclosers http://www.investopedia.com/terms/s/subprime-meltdown.asp/ref. In early October, 2007, which is roughly the beginning of the Citigroup crisis, Citigroup announced their anticipation that the third-quarter profit would fall 60% after large write-downs for unsold debt it gave to finance corporate takeovers—company acquisitions--as well as for huge losses on the worth of subprime mortgage-backed securities<ref> http://www.marketwatch.com/story/citigroup-says-quarterly-profit-to-drop-60-but-shares-gain (which is a kind of asset-backed security that is secured by a mortgage or collection of mortgaged) http://www.investopedia.com/terms/m/mbs.asp, but Citigroup believed that it would improve. It did not improve but lost a reported $3.3 billion in the third quarter. Citigroup blamed problems in the mortgage-backed securities, credit markets, and also problems in the consumer-credit area. http://www.marketwatch.com/story/citigroup-crisis-chronology Vikram Pandit, a former employee of Morgan Stanely http://nymag.com/news/businessfinance/55035/index2.html then comes into the picture as leader of an insititutional clients group created by Citigroup through the merging of its investment-banking and alternative-investment businesses. On November 1, 2007, Citigroup shares fell 7%, reaching a multiyear low and shareholders are concerned that the company will not be able to buy its way out of it.

The former CEO of Citigroup, Charles Prince stepped in November down due to the crisis. http://www.marketwatch.com/story/citigroup-crisis-chronology Shareholders, with their fear that Citigroup had no means of recovery, quickly sold their Citigroup shares, plunging the stock ever lower. Citigroup’s structure was broken due to its overwhelming size, leading to the inability to recover themselves from the crisis.http://news.bbc.co.uk/2/hi/business/7078251.stm Citigroup also fired 52,000 employees in 2008 in order to recover and restore confidence—but failed.http://www.guardian.co.uk/business/2008/nov/21/citigroup-banking In all, Citigroup losses nearly reached $30 billion, causing severe problems for the company and also the United States government. The government issued, under President Barack Obama, $45 billion in federal bailout money to Citigroup in order to amend and help them rebuild.http://www.newsobserver.com/2010/04/09/428692/panel-scolds-rubin-over-citigroup.html

In April of 2010, former CEO Charles Prince and former director Robert Rubin apologized in a testimony about the Citigroup's crisis and the effect it had on the United States and its citizens. Citigroup is being used as a case study to further understand the cause and result of the [[financial crisis] in the U.S.http://www.newsobserver.com/2010/04/09/428692/panel-scolds-rubin-over-citigroup.html

Citigroup is a global financial services company that was founded in 1812. It is based in New York City, New York and has been headquartered there ever since its inception. It currently has 263,000 employees and has two major sections: Citicorp and Citi Holdings. Citigroup has roughly 200 million customer accounts and provides services in about 140 countries. Its current CEO is Vikram Pandit who was involved in the Citigroup crisis.