Citigroup // Current

Obama Bank Rules Predicted to Be Ineffective

The Associated Press reports that President Obama's latest effort to reel in big... more

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Move Your Money: Project Urges People to Stop Banking with Wall Street

following is a transcript of an interview with Robert Johnson by Amy Goodman for Democracy Now! about Move Your Money, a project to help people transfer their money from bigger banks into smaller, community-oriented financial institutions that generally avoided the reckless investments and schemes that helped cause the financial crisis. Robert Johnson is former economist at the Senate Banking Committee and the Senate Budget Committee. He’s now the director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute.

Amy Goodman: So, Move Your Money, how did it come about?

Robert Johnson: Came about at a dinner. Eugene Jarecki, my wife Alexis and Arianna and I were talking about how frustrated people were that there was no legislative reform and there was no -- well, you might call “remorse” from the big bankers. So we started to just, how we say, bat the fat about what could be done. And we talked about how in past episodes people had sold stock, and in this episode, you could get people to move their money.

Why would they move their money when they’re happy with their services? Because they can get comparable services locally. Everything is insured by the Federal Deposit Insurance Corporation, up to $250,000. And they could stop this toxic side effect of derivatives lobbying and “too big to fail” lobbying that’s going on by the top five or six banks that --

Goodman: So, name names. Who are you saying people should -- which banks should they pull their money out of? And what banks should they put them into? Tell us what community banks are, but name the ones they should pull out.

Johnson: Citigroup, JPMorgan Chase, Bank of America, Wells Fargo and, to the extent that it’s asset management, Morgan Stanley and Goldman Sachs. Those are the six that have 97 percent of the derivatives markets. Those are the “too big to fail” institutions, or at least the large subset of the “too big to fail” institutions. But mostly, they’re the ones who are working very hard right now to stop Congress in the Senate from adequately reforming our financial system, which basically means they want to keep playing and making profit and have the taxpayer pick up the bill in the event of another—they hit another banana peel.

Goodman: And explain what community banks are.

Johnson: Community banks are small, regional or very much local institutions. Most of their activities, their lending activities and so forth, relate to the local region or community around which they collect their deposits.

Goodman: And how do know if you’re moving your money into a bank that’s not owned by one of the entities you just talked about?

Johnson: Well, that requires a little bit of research, but we do have friends at Institutional Risk Analytics that’s on this website, moveyourmoney.info, and they have rated all the FDIC call report banks, and they’ve separated out the big banks from the small, or what you might call the behind-the-scenes ownership, and given you a menu. If you plug in your zip code, it gives you a menu of the banks that they rate A or B, which is safe. And like I say, above and beyond that, you have deposit insurance. But those are the local banks that are independently owned, not owned by the big four to six.

More at link above:following is a transcript of an interview with Robert Johnson by Amy Goodman for... more

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Russian Cybergang steals millions from Citigroup

Is there no end to the run of mishaps at Citibank? Remember, as the U.S. Government... more

asherp
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IRS gave $38 billion in tax breaks for Citigroup's TARP repayment

IRS grants big bank $38 billion in tax breaks to 'ween' it off prior... more

bansheewail
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1 month ago
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Matt Taibbi Pwns Bailout Apologist

From Morning Meeting Nov. 25, 2009, Rolling Stone's Matt Taibbi and the Financial... more

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2 months ago
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Citigroup Credit Cardholders Will See Rates Jump -- Unless They Spend

For Citibank credit card holders, there is one way to escape the bank's rate... more

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3 months ago
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Walmart Closes Supplier Gap with New Financing Plan

Wal-Mart Stores Inc. is seeking to leverage its scale and its AA credit rating to offer about 1,000 suppliers an alternative to their traditional means of financing deliveries to the retailer. The move could give the world’s largest retailer by revenue more power over its suppliers in the wake of the bankruptcy filing by lender CIT Group Inc.
(O’Connell, V., 2009, November 14, par.1-2)

Wal-Mart informed its suppliers in a Nov. 2 letter of its new “Supplier Alliance Program,” in which eligible suppliers can get payment for their orders in 10 to 15 days within its receipt of goods, compared with the more typical 60 to 90 days. Under the program, suppliers can sell their Wal-Mart invoices to the retailer’s partner banks, including Wells Fargo & Co. and Citigroup Inc., according to the letter, at interest rates based partly on Wal-Mart’s credit rating. In traditional factoring, lenders give manufacturers cash for their receivables and collect payments on those invoices.
(O’Connell, V., 2009, November 14, par.3-4)

Wal-Mart, of Bentonville, Ark., said the move was aimed at improving the stability of its supply of merchandise, not replace existing relationships. “We know that many of our suppliers are dependent upon factoring and financing companies that are reportedly in financial distress,” Theresa C. Mercado, Wal-Mart’s senior director for product extension, said in its letter, which was sent to a group of about 1,000 of its suppliers, primarily apparel manufacturers. In all, Wal-Mart has about 60,000 suppliers.
(O’Connell, V., 2009, November 14, par.6)

A few retailers have begun experimenting with supply chain finance programs as alternatives to traditional factoring. In July, Kohl’s Corp. sent its suppliers a letter promoting a “reduced” 3.5% annual percentage rate of interest through its Supply Chain Finance program. The program, developed by PrimeRevenue, lets suppliers get paid early once their invoices are approved for payment, it said. The suppliers sell their invoices to Bank of America at an interest rate based on Kohl’s credit rating. Kohl’s, based in Menomonee Falls, Wisc., offered the program to 41% of its suppliers, and so far 11% have signed on, said Kohl’s spokeswoman Vicki Shamion. “This is not about CIT, but rather a proactive opportunity” for Kohl’s and its supplier partners, she said.
(O’Connell, V., 2009, November 14, par.8-9)

Suppliers might be more inclined to give certain retailers “preferential treatment” because of such programs, said Pratap Mukharji, a partner with consultant Bain & Company. It’s possible the arrangement could influence “how a supplier would look at a Wal-Mart, especially if, in a difficult economy, this program lets a supplier stay in business or make more money,” Mr. Mukharji added. Many retailers fear that once the economy recovers, their suppliers may struggle to fulfill the increase in shopper demand for certain products because they may not have access to the increased working capital needed to boost production. “The lack of visibility that retailers have into the true economic condition of some of their smaller suppliers is a big concern,” Mr. Mukharji said.
(O’Connell, V., 2009, November 14, par.10-11)

Wal-Mart says it hopes the program will result in a more stable supplier base and more predictable supply of merchandise. Wal-Mart spokesman John Simley said its AA rating should result in “more attractive” interest rates for many of its suppliers than they could otherwise get. At Fitch Ratings, for instance, Wal-Mart is currently the highest-rated retailer, with a AA rating, while Kohl’s is rated BBB+, a Fitch spokeswoman said.
(O’Connell, V., 2009, November 14, par.12)

Source link:
http://online.wsj.com/article/SB10001424052748703683804574533821208957360.html?mod=googlenews_wsj

http://theretailsector.wordpress.com/2009/11/15/walmart-closes-supplier-gap-with-new-financing-plan/Wal-Mart Stores Inc. is seeking to leverage its scale and its AA credit rating to... more

jmsrmy
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3 months ago
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Wall Street gets Swine Flu Vaccine while High-Risk Groups are Struggling to get it

This is beyond outrageous. Wwhile pregnant women and children with respiratory... more

Future_America
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3 months ago
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"Showdown In Chicago": Protesters Crash Bankers Convention, (VIDEO, IMAGES)

Via National People's Action, here is some footage from the protesters at the ABA conference. From the footage, it's clear there are some strong emotions from the protesters.

At one point a protester grabs a megaphone and says:

"The American Bankers Association has helped loosen the rules that protect us, allowing the unfettered greed that has brought us to the brink of a recession. And for those bankers who are members and support the ABA's war against the working and middle class, shame on you!"

The crowd soon begins chanting "Shame On You!" in unison.

Via Progress Illinois' Twitter feed, here's more video of Sen. Durbin's speech. In this section, he calls for a "showdown" with Wall Street.

According to the Twitter feeds of National People's Action and the SEIU, the protesters are headed to the ABA's "Roaring '20s"-themed cocktail party. (Perhaps the ABA is not aware of the irony of having such an event.)

Sen. Dick Durbin spoke in front of the protesters earlier today. Here's a clip from the video, in which Durbin tells the story of homeowner who was struggling to stay in her home -- and was apparently talked into agreeing to a seemingly atrocious mortgage. The woman's mortgage was riddled with hidden fees and by, "the types of things even a Wall Street lawyer couldn't explain to anyone," Durbin said.

The American Bankers Association's annual convention in Chicago has become the scene for a series of major protests, which are set to continue through Tuesday. Dubbed "the Showdown in Chicago." (http://www.showdowninchicago.org/index.html) (Check back here frequently for updates on the protests.)

Groups like the National People's Action, the Service Employees International Union, Americans For Financial Reform and the AFL-CIO are expected to turn out with thousands of protesters. Sen. Richard Durbin (D - Illinois) is scheduled to address the protesters Sunday evening. Conference speakers include Newt Gingrich, conservative columnist George Will and FDIC chairman Sheila Bair.

Check out these photographs of the "Showdown in Chicago," taken by organizers of the protest.

http://www.huffingtonpost.com/2009/10/25/showdown-in-chicago-prote_n_333245.htmlVia National People's Action, here is some footage from the protesters at the ABA... more

atomiclegion
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4 months ago
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"Too Big To Fail" Legislation Is On The Way

A senior administration official said on Sunday that after extensive consultations... more

atomiclegion
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4 months ago
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Your Money, Their Lobbyists: Citigroup Taxpayer Ownership Doesn’t Prevent Lobbying

Oct. 23 (Bloomberg) -- Citigroup Inc., which has yet to repay $45 billion in federal... more

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4 months ago
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Pay cuts on Wall St.

The White House is calling for pay cuts for top ranking executives at the companies... more

Kay_Bee
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4 months ago
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Citigroup prepares to fight banking reform

Citigroup has hired banking industry lobbyist Richard F. Hohlt, the man who blocked... more

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4 months ago
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The Game of Life= Plutonomy

One investment strategy by Citigroup defines equity earnings in the global market as... more

resolute
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4 months ago
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Citigroup U.S. retail bank focusing on 6 cities

Citigroup Inc's (C.N) U.S. retail banking business plans to focus its marketing... more

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5 months ago
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Road to Ruin: Mortgage Fraud Scandal Brewing | American News Project

Criminal fraud may be the most underreported aspect of our current financial crisis.... more

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9 months ago
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Citigroup Reports Better Than Expected Results

Citigroup says the first quarter of 2009 was much better than last year's.

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10 months ago
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Wow - Funny or Die citibank Nationalized Commercial

They throw down the gauntlet - interesting...scary...

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11 months ago
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Citigroup to Lower Mortgage Payments

Struggling bank Citigroup Inc. said Tuesday that it will lower mortgage payments for... more

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11 months ago
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Citigroup Stock Costs Less Than Their ATM Fee

Interesting article about Citi: "At $1.41, the shareholders have essentially... more

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12 months ago
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tagged w/ Citigroup

Obama Bank Rules Predicted to Be Ineffective

Move Your Money: Project Urges People to Stop Banking with Wall Street

Russian Cybergang steals millions from Citigroup

IRS gave $38 billion in tax breaks for Citigroup's TARP repayment

Matt Taibbi Pwns Bailout Apologist

Citigroup Credit Cardholders Will See Rates Jump -- Unless They Spend

Walmart Closes Supplier Gap with New Financing Plan

Wall Street gets Swine Flu Vaccine while High-Risk Groups are Struggling to get it

"Showdown In Chicago": Protesters Crash Bankers Convention, (VIDEO, IMAGES)

"Too Big To Fail" Legislation Is On The Way

Your Money, Their Lobbyists: Citigroup Taxpayer Ownership Doesn’t Prevent Lobbying

Pay cuts on Wall St.

Citigroup prepares to fight banking reform

The Game of Life= Plutonomy

Citigroup U.S. retail bank focusing on 6 cities

Road to Ruin: Mortgage Fraud Scandal Brewing | American News Project

Citigroup Reports Better Than Expected Results

Wow - Funny or Die citibank Nationalized Commercial

Citigroup to Lower Mortgage Payments

Citigroup Stock Costs Less Than Their ATM Fee

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