Citibank - Coconut Creek, FL

Citibank
4807 Coconut Creek Parkway
Coconut Creek, FL, United States
33063
Phone: 800-627-3999
Fax: (954) 968-7759

Lobby Hours:
9:00-5:00 Monday
9:00-5:00 Tuesday
9:00-5:00 Wednesday
9:00-5:00 Thursday
9:00-6:00 Friday
9:00-1:00 Saturday

Drive-Up Hours:
9:00-5:00 Monday
9:00-5:00 Tuesday
9:00-5:00 Wednesday
9:00-5:00 Thursday
9:00-6:00 Friday

Washington, DC â€“ Chair Warren and members of the Panel, I am Vikram Pandit. I appreciate this opportunity to appear today as the Chief Executive Officer of Citigroup.

Citi today is fundamentally different from the company we inherited when I became CEO two years ago. The write downs Citi took during the financial crisis â€“ together with concerns about the quality of some of our assets â€“ led to questions about the Bank's financial condition. Now, as a result of the government's response to the crisis, our new team's focused strategy and the commitment of all our employees, I am pleased to say we are in a far different and much healthier position. Today, Citi is operating on a very strong foundation and is positioned to contribute to the economic recovery and generate sustained profitability for the benefit of all our stakeholders.

We have bolstered our financial strength, overhauled our risk management, reduced our risk exposures, defined a clear strategy and made Citi a more focused enterprise by returning to banking as the core of our business. As a result:

* We are now one of the best-capitalized banks in the world, with a Tier One Capital ratio of 11.7%, a Tier One Common ratio of 9.6% and loan loss reserves of $36 billion.
* Our leverage is 12 to 1, down from 18 to 1 when I became CEO.
* We have cut the size of our balance sheet by half a trillion dollars, or 21% from peak levels in the third quarter of 2007, and substantially reduced our exposure to risky assets.
* Our cash liquidity is strong at $193 billion, and we have reduced operating costs by more than $13 billion annually.

These achievements reflect the lessons we have learned from the financial crisis and acted upon at Citi, and I will expand further on these and other issues you have asked me to address in my testimony.

First, however, I want to thank our Government for providing Citi with TARP funds. For Citi, as for many other institutions, this investment built a bridge over the crisis to a sound footing on the other side, and it came from the American people. As the result of a successful public securities offering, in December 2009 we repaid $20 billion of the Government's TARP investment in Citi in consultation with our regulators and the Department of the Treasury. The Government has earned $3.0 billion in dividends and interest on its investment and asset-guarantee program for Citi. In addition, we have paid the Government $5.3 billion in premiums on the asset-guarantee program, which we exited without the Government incurring any losses or making any payments. American taxpayers still hold 27% of Citi's common stock, and we look forward to helping them realize value on that investment. Citi owes a large debt of gratitude to American taxpayers.

Copyright Â© 2010 Citigroup Inc.