At one point, Citibank was considered the flagship of American banking and it still has a presence in almost 100 countries. It’s too early to tell how this latest development will affect the banks status and bottom line moving forward, but the signs aren’t encouraging. This is a bank that seems to have lost its way a little bit.
Not Unprecedented
Citibank isn’t the only bank that’s found itself at the center of controversy for misleading investors and borrowers. Just last year Bank of America agreed to pay $430 million in a settlement for the misuse of customer’s money. Between 2009 and 2012, the bank had been using customer cash to fund their own investments without their knowledge or permission. This was a serious breach of trust and another example of a major American bank with questionable policies.
America has thousands of banks, both big and small, so it’s probably not a major revelation that some of them may behave unethically. What is surprising is that these practises are taking place at America’s largest financial institutions. There’s a real danger that these incidents could undermine the foundation of the system if they continue.
