Nuns, union pension plan seek Citigroup breakup

Nuns, union pension plan seek Citigroup breakup

Posted: Updated:

BOSTON (AP) -- A proposed shareholder resolution filed on behalf of a group of Benedictine nuns and a union pension fund asks Citigroup's board to consider separating one or more of the bank's business units from the parent company.

The proposal requests the board to appoint a committee of independent directors to explore "extraordinary transactions that could enhance stockholder value, including the separation of one or more of Citigroup's businesses," the filers of the resolution said in a news release Wednesday.

The proposal was filed by Trillium Asset Management and the AFSCME Employees Pension Plan.

Trillium is a Boston-based investment adviser that filed the resolution on behalf of one of its clients, the Benedictine Sisters of Mount St. Scholastica. Trillium clients include wealthy individuals, foundations, endowments, and religious institutions such as the Benedictine Sisters of Mount St. Scholastica, an order of 144 nuns based in Atchison, Kan.

Trillium clients own about $9 million worth of shares in Citigroup, said Jonas Kron, a vice president at the firm.

The AFSCME pension plan's Citi shares are currently valued at nearly $2.8 million.

The resolution's filers have met requirements to bring the proposal to a vote at Citigroup's annual shareholder meeting next spring, Kron said.

Citigroup Inc. spokesman Mark Costiglio declined to comment on the shareholder proposal. But he said that Citi "has sold more than 60 businesses and reduced assets in Citi Holdings by more than $600 billion since the credit crisis began."

Matthew Patsky, Trillium's CEO, said in a statement that Citigroup has made progress since the 2008 financial crisis to simplify its business model and limit financial risks. But he said that progress "has been slow and incomplete," and added that Citigroup "remains burdened by excessive complexity."

The resolution comes after Vikram Pandit's surprise resignation as Citigroup's CEO on Oct. 16. Chief Operating Officer John Havens left the New York-based bank at the same time.

Citi gave no explanation at the time, but it was widely reported that Pandit had fallen out of favor with the company's board. The bank was embarrassed by several missteps including failing a financial checkup this spring with the Federal Reserve, which refused Citi's request to raise its dividend.

Pandit's replacement is Michael Corbat, who had been the CEO of Citigroup's Europe, Middle East and Africa division. He also ran Citi Holdings.

Under Corbat, many analysts expect Citigroup to pursue a strategy of more cost-cutting, more shrinking and more focus on traditional banking, like making loans. Citigroup has about 262,000 employees, and generated about $78.4 billion in revenue last year. Once the nation's largest bank, Citi is now the third-largest, behind JPMorgan Chase & Co. and Bank of America Corp.

Shares of Citi fell 25 cents to $35.91 in midday trading. The stock is up about 37 percent this year, but was decimated in the 2008 crisis and remains far below where it was when Pandit took over in 2007.

  • Your MoneyMore>>

  • Future of money

    Future of money

    Wednesday, April 16 2014 10:36 PM EDT2014-04-17 02:36:39 GMT
    These days, when you check out of a grocery store, your toughest choice might be cash or credit.  But in a few years, there may be no need to carry dollar bills, credit cards, or stacks of cash.  It might sound like the stuff of science fiction but futurist and social scientist Heather Schlegel says it's not.
    These days, when you check out of a grocery store, your toughest choice might be cash or credit.  But in a few years, there may be no need to carry dollar bills, credit cards, or stacks of cash.  It might sound like the stuff of science fiction but futurist and social scientist Heather Schlegel says it's not.
  • IRS considers taxing work freebies like food

    IRS considers taxing work freebies like food

    Wednesday, April 16 2014 9:11 PM EDT2014-04-17 01:11:44 GMT
    In competitive job markets like Silicon Valley, companies are doing everything they can to entice the best and brightest -- offering freebies that have become the stuff of legend.Employee perks like free food at lavish cafeterias, laundry and even yoga are not unheard of.  But the taxman could soon crack down.  The IRS reportedly is looking at these perks and seeing if these companies need to start paying up for the free stuff they offer employees.
    In competitive job markets like Silicon Valley, companies are doing everything they can to entice the best and brightest -- offering freebies that have become the stuff of legend.Employee perks like free food at lavish cafeterias, laundry and even yoga are not unheard of.  But the taxman could soon crack down.  The IRS reportedly is looking at these perks and seeing if these companies need to start paying up for the free stuff they offer employees.
  • Social streaming video from your iPhone with YEVVO

    Social streaming video from your iPhone with YEVVO

    Wednesday, April 16 2014 8:46 AM EDT2014-04-16 12:46:01 GMT
    We met YEVVO's 26-year-old co-founder and CEO, Ben Rubin, on a rainy day in Madison Square Park. Among the four of us (Ben, me, my photographer, and the representative from Ben's PR firm), we had four smartphones and the free app Rubin created."What if you were going live during this interview and then somebody [online] started asking questions and then [that somebody] actually helped to create the content?" Rubin asked.
    We met YEVVO's 26-year-old co-founder and CEO, Ben Rubin, on a rainy day in Madison Square Park. Among the four of us (Ben, me, my photographer, and the representative from Ben's PR firm), we had four smartphones and the free app Rubin created."What if you were going live during this interview and then somebody [online] started asking questions and then [that somebody] actually helped to create the content?" Rubin asked.
Powered by WorldNow

KTBC FOX 7
119 East 10th Street
Austin, TX 78701

Phone: (512) 476-7777
Fax: (512) 495-7001

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices