Citigroup

Introduction

The Name of the company which I choose, is Citigroup. I've been interested in the company for a very long time. Since the day I first met my brother in-law eight years ago, I've been at awe in regards to the sophisticated manor in which employees carry themselves and the company name as a badge of pride and accomplishment.

When I first entered High School, I instantly became an honors student and attained the honor of being directly involved with the community based activities of Soloman Smith Barney, because of my direct involvement with many employees of the company, I learned that Citigroup would be the best place for me to build a career upon matriculation from college.

Last Summer when I graduated from High School, I was given an internship in the company, continuing my networking exposure. All summer interns were given a complementary breakfast with Sanford I. Weill, but myself and a few other Seniors from my former High School were treated to a private lunch with Mr. Weill, I would say it was as a direct result of that lunch my appetite for knowledge of the company grew.

Framework Of the Business

Citigroup did not begin as one single entity, but rather as many smaller companies, which would later become part of larger, more efficient corporation, through mergers and acquisitions. The main symbol of the company, the red umbrella, represents a company by the name of travelers, which was founded in 1864, "when a group of Hartford businessmen each contributed $200,000 as capital stock in order to establish this new insurance enterprise." As a symbol of insurance protection, the umbrella became associated with The Travelers in 1960, as protection against "a rainy day." Once Travelers Group merged with Citicorp in 1998 to form Citigroup Inc., the new company retained the red umbrella as its logo.

In the investments and securities market, Citigroup holds the names of two legendary brokerage firms, Soloman Brothers and Smith Barney. Smith Barney dates back to nineteenth century Philadelphia, where a young broker, Charles Barney, founded his firm in 1873 and a young investment banker, Edward B. Smith, started his in 1892. These pioneers of the American securities industry helped make Wall Street the world's financial capital. In 1938 Charles D. Barney & Co. and Edward B. Smith & Co. merge, forming Smith Barney & Co. In 1910 Arthur, Herbert and Percy Salomon found Salomon Brothers & Co. and partnered with Morton Hutzler & Co. to become Salomon Brothers & Hutzler.

In 1987 Smith Barney was acquired by Primerica, a publicly held financial services corporation. Then in another acquisition Primerica obtains the retail brokerage and asset management operations of Shearson Lehman Brothers, and Investment Banking Firm, and combines them with Smith Barney. Then in yet another acquisition Primerica acquires The Travelers Groups In December of 1993.

All of their mergers and acquisitions are what made Citigroup the Worlds Most powerful financial services company. Because of the acquisition of the Travelers group, Soloman Smith Barney and Primerica, Citigroup's Global Consumer Investment Banking Firm is by far the worlds most trusted securities brokerage firm.

Many of the smaller portions of the company were incorporated initially in throughout the united states and the world, but Citigroup as a sole entity was incorporated in Delaware during 1998. The company chose to incorporate in Delaware rather than in New York City, Where it's company headquarters stands at 399 Park Avenue, because of lower taxes imposed by Delaware's State government.

Each of the original pieces of the Citigroup Pie has it's own creator, but the man who had both the vision and the charisma to bring the dream of a company which performs nearly all financial needs better than any other company, was Sanford I. Weill.

Basic Business Factors

During the course of 2003 Citigroup, through progressive mergers and acquisitions of new financial firms and holding has propelled itself to the forefront of the financial services world. As of April 2004 the corporation was rated number one in the category of world financial institutions by Fortune Magazine. The company would also be ranked eight in regards to revenue but second when looking at total yearend profits. During the fiscal year of 2002-2003 Citigroup managed to achieve 94.7 billion dollars in Revenue and 17.8 billion dollars of profit.

The Company is divided into two smaller branches; one being the Global Consumer Investment Banking Firm, and the other being the Consumer Banking Firm.

The target market of the consumer banking firm involves regular everyday individuals such as you or I, it deals with investments and securities on a individual consumer level. The notable companies involved in this aspect of Citigroup are Primerica, which refinances mortgages and generally deals with life insurance and general personal securities, the other large company with Citigroup involve in the consumer banking firm, is Citi-Bank, which provides loan and all other general consumer banking activities.

The Global Corporate and Investment Banking Firm, handles finances on a "business" level, whenever a company decides that I wants to trade on the stock market, it is this