All articles tagged with #citibank
Major US banks like Bank of America and Citibank are planning to launch stablecoins amid evolving crypto-friendly regulations, with Bank of America working on a stablecoin and others monitoring developments, signaling increased institutional interest in digital assets.
American Airlines flight attendants will continue to earn commissions on approved credit card applications under a new deal with Citibank. Meanwhile, Qatar Airways miles can now be converted to Marriott points, though it's not a favorable exchange. Air Canada will restrict basic economy fares from carrying full-sized bags starting next year, with exceptions for certain members. Dallas is considering major changes to Love Field airport, and a judge has rejected Boeing's 737 MAX plea deal due to DEI criteria for a compliance monitor.
American Airlines has secured a 10-year exclusive deal with Citibank to issue its AAdvantage credit cards, projecting a significant financial boost. The airline expects its cash remuneration from co-branded credit cards and partners to grow by 10% annually, potentially reaching $10 billion per year, with an additional $1.5 billion in annual pre-tax income. This deal highlights the strategic importance of loyalty programs in the airline industry, as American Airlines aims to enhance its financial performance through this partnership.
New York Attorney General Letitia James has filed a lawsuit against Citibank, alleging that the bank's poor online security practices have contributed to scammers stealing millions from customers. The lawsuit claims that Citibank has illegally refused to reimburse fraud victims, leading to devastating financial losses for many. Citibank defended its security and refund practices, stating that it closely follows all laws and regulations related to wire transfers and works to prevent threats. The lawsuit seeks a permanent injunction against Citibank, an accounting of customer losses, payment of restitution and damages to harmed consumers, and civil penalties.
New York Attorney General Letitia James filed a lawsuit against Citibank, alleging that the bank failed to protect and reimburse customers who fell victim to fraud, resulting in millions of dollars lost to scammers and hackers. The lawsuit claims that Citibank's weak security and anti-fraud measures led to unauthorized account takeovers and illegal refusal to reimburse fraud victims. Citibank denies the allegations, stating that it follows all laws and regulations related to wire transfers and has taken steps to proactively safeguard client accounts. The lawsuit also alleges that Citibank misled customers about their rights after their accounts were hacked and illegally discriminated against Armenian Americans on credit card applications.
New York Attorney General Letitia James has filed a lawsuit against Citibank, alleging that the bank failed to protect customers from hacks and scams and refused to reimburse victims, in violation of the Electronic Fund Transfer Act. The lawsuit claims that Citibank's negligence led to substantial financial losses for New York consumers, amounting to millions of dollars, and highlights inadequacies in the bank's response to fraudulent activities. Citibank has responded by stating that they closely follow all laws and regulations related to wire transfers and have taken proactive steps to safeguard clients' accounts.
New York Attorney General Letitia James has filed a lawsuit against Citibank, alleging that the bank failed to protect and reimburse victims of electronic fraud, costing New York account holders millions of dollars. Citibank denies the allegations, stating that it works hard to prevent threats and assist customers who become victims of fraud. The lawsuit includes specific cases of individuals who had thousands of dollars stolen from their accounts and were not reimbursed, and alleges that Citibank must reimburse victims of fraud under the Electronic Fund Transfer Act.
Citibank has been accused by the Consumer Financial Protection Bureau (CFPB) of illegally discriminating against Armenian Americans by singling them out on credit card applications based on their surnames. The CFPB found that Citi targeted applicants with last names ending in "-ian" and "-yan" as well as applicants in and around Glendale, California, home to a large Armenian American population. The bank allegedly applied more stringent criteria to these applicants, including denying them outright and falsifying documents to conceal the discrimination. As a result, Citi has been ordered to pay $25.9 million in fines and consumer redress. Citi has apologized and taken actions to prevent such discrimination in the future.
The Consumer Financial Protection Bureau (CFPB) has ordered Citibank to pay $25.9 million in fines and consumer redress for intentionally and illegally discriminating against credit card applicants of Armenian descent. From 2015 to 2021, Citibank singled out applicants with Armenian surnames, denying them credit and providing false reasons for denial. The bank's supervisors conspired to hide the discrimination by instructing employees not to discuss it in writing or on recorded phone lines. Citibank will pay $1.4 million to affected consumers and a $24.5 million penalty. The CFPB found that Citibank stereotyped Armenians as prone to crime and fraud and illegally fabricated documents to cover up its discrimination.
Citibank has won a legal battle in the UK after firing an employee, Szabolcs Fekete, for claiming expenses for sandwiches and coffee for his partner during a business trip and then lying about it. Fekete initially said he consumed the food alone but later admitted to sharing it. The bank argued that the claim breached its expense management policy, which does not reimburse spousal travel and meals. The employment judge concluded that Fekete's dismissal was fair as he was not initially honest about the misclaimed expense. Citibank expressed satisfaction with the decision.
A former Citibank analyst, Szabolcs Fekete, has lost his claim of unfair dismissal after it was discovered that he had lied about expensing meals for his partner and charging them to the company. Fekete had taken a business trip to Amsterdam and claimed that all the food and drinks were for himself, despite expense reports showing meals for two people. When questioned further, Fekete elaborated on his eating habits, claiming to have consumed two sandwiches, two coffees, and a third drink in one sitting. The London tribunal rejected Fekete's claims, finding both the complaints of unfair and wrongful dismissal to be unfounded. Citibank expressed satisfaction with the decision.
The House GOP has issued subpoenas to Citibank over allegations of "back-channel" cooperation with the FBI regarding the events of January 6th.
House Judiciary Committee Chairman Jim Jordan has subpoenaed Citibank for not cooperating in an investigation into whether financial institutions, including Citibank, have shared Americans' financial data with the FBI. The committee had previously sent letters to multiple banks requesting voluntary cooperation, and while most complied, Citibank did not. The investigation was launched following reports that Bank of America had voluntarily shared transaction data with the FBI related to the January 6, 2021, Capitol riot. Jordan's office alleges that individuals who purchased firearms with Bank of America products around that time were prioritized on the FBI's list.
House Judiciary Committee Chairman Jim Jordan has issued a subpoena to Citibank, demanding information about whether the bank shared customer transaction data with law enforcement following the January 6 attack on the U.S. Capitol. Citibank is the only bank that has not voluntarily complied with the committee's request, according to sources. The wider investigation into whether other banks provided data to assist in the investigation and prosecution of the rioters was sparked by an FBI whistleblower who revealed that Bank of America had voluntarily shared a list of individuals who made transactions in the Washington area during the specified period. The committee is now seeking to determine if other banks engaged in similar actions.
Climate activists protested outside US banks, including Citibank and Wells Fargo, demanding that they enact actionable climate resolutions on the eve of their annual shareholders meetings. The latest report from Banking on Climate Chaos found that US banks had loaned over $4.6tn to the fossil fuel industry since 2016, with Citibank, JP Morgan, Wells Fargo, and Bank of America being the worst offenders. Despite promises to cut back on fossil fuel funding, these banks continue to finance projects for companies such as ExxonMobile, Shell, Chevron, or ConocoPhillips. Protesters accuse these banks of "greenwashing" and engaging in climate hypocrisy.