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Citigroup Funds Environmental Destruction and Fuels Scandal

Citigroup Funds Environmental Destruction and Fuels Scandal

Citigroup is tied to Enron, Pinochet, and climate change.

October 21, 2007 —

With total assets valued at $1.8 Trillion, the financial services company Citigroup consistently tops the Forbes 2000 list as the world’s largest company. This giant corporation spans the globe, with more than 200 million customer accounts in more than 100 countries. It’s best known in the United States through its subsidiary Citibank, and is no stranger to controversy.

Before opening up an account with Citibank, consider how your savings might be used by Citigroup to fund unethical endeavors.

Bankrolling Bandits

In 2002, Citigroup’s brokerage division was a key lender to WorldCom shortly before that company collapsed in scandal. WorldCom’s bankruptcy proved to be the largest in history, as the company now known as MCI went on to shed $35 Billion in debt. Citigroup later paid $2.65 Billion to settle class-action lawsuits brought by investors. The next year it agreed to pay $120 Million to settle SEC allegations that it lent money to Enron and Dynergy in a way that allowed those companies to disguise the loans as operating cash.

In 2004, government regulators in Japan closed four Citigroup branches after bank staff and managers were found to have obstructed and lied to inspectors. Japan’s Financial Services Agency found that bank managers used deceptive sales tactics and allowed transactions that “could be suspected of being associated with money laundering.”

In 2005, a Senate investigation uncovered Citibank’s role in hiding assets for the former Chilean dictator Gen. Augusto Pinochet. Pinochet came to power in a bloody 1973 coup that overthrew the democratically elected government of Salvador Allende. His regime tortured and killed thousands of Chileans over the next 17 years. The Senate report found that Pinochet stashed millions of dollars in 63 accounts with Citigroup, which set up two offshore holding accounts and lines of credit for the General and his family.

Citigroup and bank of America have come under fire as chief financiers of a new “coal rush” to build 150 new coal-fired power plants. The Rainforest Action Network says the plants will emit more than 600 million tons of carbon dioxide annually, offsetting efforts to combat climate change.

 

 

 

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