Citigroup, Banks | featured news

Shareholders of Citigroup rejected a board-approved pay package for CEO Vikram Pandit and other top executives, sending a loud and clear message that executive compensation needs to be tied to performance, or else.

Citigroup Inc may be a surprise winner when the Federal Reserve reveals the results of bank stress tests designed to gauge the health of the biggest U.S. banks.

A federal judge on Monday struck down a $285 million settlement that Citigroup reached with the Securities and Exchange Commission, saying he couldn't tell whether the deal was fair and criticizing regulators for shielding the public from the details of what the firm did wrong.

Federal regulators charged a Citigroup unit with negligence Wednesday, saying it misled investors about an investment product it used to bet against them as the housing market deteriorated. Citigroup agreed to pay a settlement of $285 million, which will be distributed to investors, the Securities and Exchange Commission said.

itigroup's strategy of slimming down and focusing on a few core businesses is paying off. The New York bank reported third quarter earnings rose 74 percent in the third quarter, to $3.8 billion, due to lower losses from loans and an accounting gain. Its international consumer lending business grew in Asia and Latin America. The bank also decided to keep its credit card partnership with retailers as that business improved.

Another day, another new bank fee. As the uproar swelled over Bank of America Corp.'s planned $5 monthly charge for debit cards, megabank rival Citigroup Inc. was telling checking accounts holders that it would sock them with a $15 a month fee unless they maintain a balance above $6,000.

Moody's downgraded Bank of America's and Wells Fargo's long-term ratings and the short-term ratings of Citigroup, saying it believes the U.S. government is less likely to support the banks if needed.

Citigroup Inc said a cyber attack in May affected over 360,000 of its customers, or almost twice the initial number that the bank's figures had suggested. After a week of being pressured over its delayed disclosure of the data breach, the third largest U.S. bank by assets revealed more details in a statement late on Wednesday.

About 200,000 Citibank credit card customers in North America have had their names, account numbers and email addresses stolen by hackers who broke into Citi's online account site.

Moody's Investors Service said it may downgrade the debt ratings of Bank of America Corp, Citigroup Inc and Wells Fargo & Co, citing concerns about waning political willingness to offer support for the largest U.S. banks.