Citigroup Monitor And His Allotted Duties

By Gregory Phillips


One of the American multinational investment companies is Citigroup Inc., or commonly called as Citi. However, an issue was thrown at them during the global financial crisis that affected their internal operations. To resolve this, they signed the Settlement Agreement and agreed with having an independent Citigroup monitor.

The five states, the federal government, and Citi were the signatories of the agreement. Illinois, New York, Massachusetts, California, and Delaware were the said five states. An allegation was made stating that Citi had violated federal laws between 2006 to 2007 in the package, structure, market, and sale of RMBS and CDOs. RMBS pertain to the residential mortgage backed securities while CDOs to collateralized debt obligation.

One of the sections in the agreement is consumer relief. The courts, the government, and the states have appointed Thomas Perrelli as the one who will track Citi in their progress. He also will give certification that the company has met its obligations by December 31, 2018 regarding this section.

He has a team who will assist him in doing his duties. He is to head them in committing transparent reports as they provide information to the public regarding the adherence of Citi to the agreement. These reports will be done each quarter reflecting the progress of their obligations to consumer relief.

His reports will be communicated through various platforms. The platforms are conducting a meeting, posting in the Citi Monitorship website, and giving press statements. During the meeting, representatives of interested parties will be present he and his team organized. Interested parties who want to know the results are the states, the public, and the government.

Limitations are also detailed in addition to his duties. He and members of his team are to not conduct actions beyond their mandated duties, control, and capabilities. If they go beyond that, they are legally liable to reparations. If multiple aggressions are found, this can lead to ultimate removal from the monitoring position.

He will not dictate or hold any authority as to how Citi will provide the forms of consumer relief. In relation, he will not dictate them on which consumers to give the relief to. He also is not to show any interest and obligation over the settlement amount as this is between Citi and governing bodies.

Citi Monitorship Ninth Report November 2018 is the latest report in their website. However, no statements were found to concretely certify Citi in completing their obligations. Their submission for consumer relief was implicated causing issues in eligibility under Menu Items 1D, 1E, and 1H. Issues were also found under Item 4A which involves receipt of credit. It was fortunate that both of them have come up with a resolution to fix these ineligibility problems.

If he finds that Citi will not be able to complete their obligations by the time they release their last report, then Citi is contractually obligated to pay the remaining obligation in cash to the nonprofit organization, NeighborWorks America. Per agreement, payment will mark the completion of their obligation. The money will go to housing counseling, foreclosure prevention, neighborhood stabilization, and other related works.




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