Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

12/5/2012 (2 years ago)

Catholic Online (

New regulations are costing jobs around the world.

Citibank is shedding 11,000 jobs as well as scaling back operations in new markets in an effort to save $1 billion through the next year. The move to drive down costs comes as Obama's tax increases couple with the fiscal cliff and European debt crisis to create uncertainty across the industry.

Citibank is cutting jobs and costs in the face of new regulations and fiscal uncertainty.

Citibank is cutting jobs and costs in the face of new regulations and fiscal uncertainty.


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

12/5/2012 (2 years ago)

Published in Business & Economics

Keywords: Obama, Citi, Citibank, cuts, regulations, fiscal cliff, European debt

NEW YORK, NY (Catholic Online) - Citigroup is one of the world's largest firms with nearly two trillion dollars in assets worldwide. For many Americans, Citi provides banking and checking services as well as credit and investments.

The new CEO of the company, Michael Corbat, 52, took over in October and has set out to reduce operating expenses. In January, his plan will cut 11,000 jobs and reduce some global operations. Many of the streamlined jobs will be in other countries besides the U.S.

The move is expected to save Citi nearly $1 billion in 2013. The announcement has already caused Citi's share price to move upwards by 4 percent.

The anticipated percentage reduction of the workforce is about 4.2 percent.

The reasons for the cut include a number of changes in the fiscal landscape. As President Obama's new tax increases and a variety of fiscal regulations impact the industry, the banking giant must make tough choices to comply while upholding its fiduciary responsibilities.

Also a factor is the fiscal cliff and European debt crisis. Both events could have a major, adverse impact on the banking industry as a whole should either one come to a head.

The bankers themselves are also seeing some cuts. Bonuses for some divisions are being cut by as much as 10 percent, particularly in the securities unit of the company.

New capital rules are to blame, which are compelling banks across the nation to slash both staff and pay to continue generating any profit at all.

Some staff can be replaced with computers and upgraded technology, while others will simply have to work harder to finish their tasks. This is common in any industry where staff is reduced.

The ultimate hope is to protect Citigroups investments around the world, and to allow the company to remain competitive in the global market. Of course, if governments, particularly in the U.S. continue to change the rules of banking, then further changes may have to be made in the years to come.


Pope Francis: end world hunger through 'Prayer and Action'

Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2015
That human trafficking, the modern form of slavery, may be eradicated.
Evangelization: That with a missionary spirit the Christian communities of Asia may announce the Gospel to those who are still awaiting it.


More Business & Economics

Overworked Wall Street employees experience seizures, are hospitalized, and have died Watch

Image of John Hughes in Thomas' bedroom (Damon Winter).


Wall Street has always been a very demanding place to work and with recent work-related deaths, it seems that Wall Street must find a way to provide work-life balance to its employees.  NEW YORK CITY, NY (Catholic Online) - Thomas Hughes was a 29-year-old ... continue reading

7 ways to bring your family out of debt Watch

Image of


There are a lot of ways the improper handling of finances can jeopardize you and your family. The cost-of-living continues to get higher yet your income doesn't. How can you make ends meet? LOS ANGELES, CA (Catholic Online) - Fear not! You can regain control of your ... continue reading

3 easy ways to save money and pay off debt Watch

Image of


Work and play, earn and spend -It's the way the economy survives, but what about your survival? If you're having trouble saving money, don't have a dedicated savings account or just don't know how to stop spending, you may have a problem. LOS ANGELES, CA (Catholic ... continue reading

Is the stock market in trouble? Historical market turndowns following papal visits Watch

Image of Papal visits versus the stock market were reviewed.


As Pope Francis visits the United States, historical data of visits from his predecessors to the United States were linked to several market downturns in the US. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Pope Francis made his historical visit to the United ... continue reading

Construction of high-speed rail between L.A., Las Vegas approved by U.S., China Watch

Image of Signed before Chinese President Xi Jinping's state visit to the U.S., the project is a milestone in China's efforts to market its high-speed rail technology in advanced economies.

By Catholic Online (NEWS CONSORTIUM)

A joint venture to build a high-speed railway linking Las Vegas and Los Angeles has been agreed upon. The project will be the first Chinese-made bullet-train project in the U.S. LOS ANGELES, CA (Catholic Online) - XpressWest Enterprises LLC, along with a China ... continue reading

PENDING FED DECISION: U.S. may be due for the first rate hike in 10 years Watch

Image of A relative

By Catholic Online (NEWS CONSORTIUM)

The Federal Reserve may have to make a very hard decision shortly. "If the Open Market Committee takes the plunge, it will be the first US rate hike in nearly 10 years," Telegraph columnist Jeremy Warner says. LOS ANGELES, CA (Catholic Online) - It will be the ... continue reading

Bear market looms, Yale University market scholar warns Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

There is widespread concern that U.S. stocks are overvalued, which will lead to a ferocious bear market unseen since the "Dot-com" bubble burst in 2000. According to research by Yale University market scholar and Nobel economics laureate Robert Shiller, while ... continue reading

Job participation rate in U.S. at 38-year low Watch

Image of According to Bureau of Labor Statistics, the nation's civilian non-institutional population - which means that all people 16 years of age or older who were not in the military or an institution -- reached 251,096,000.

By Catholic Online (NEWS CONSORTIUM)

Americans not participating in the labor force jumped by a whopping 261,000 more in August than there was in July. The participation rate in U.S. labor remained at 62.6 percent, a 38-year low, for a third straight month in August. These are "cheerful" ... continue reading

Islamic State attempts to replace the U.S. dollar with gold coins Watch

Image of A five denar piece featuring a picture of seven wheat stalks, representing the

By Kenya Sinclair (NEWS CONSORTIUM)

The Islamic State has announced it will be producing gold currency with the goal of weakening the dollar. LOS ANGELES, CA (Catholic Online) - A video posted Saturday, August 29th by the Islamic State warns that replacing the dollar will be "the second blow to America's ... continue reading

Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.


Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading

All Business & Economics News


Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Subscribe to Catholic OnlineYouTube Channel

Daily Readings

Reading 1, Malachi 3:13-20
13 'You have said harsh things about me, says Yahweh. ... Read More

Psalm, Psalms 1:1-2, 3, 4, 6
1 How blessed is anyone who rejects the advice of the ... Read More

Gospel, Luke 11:5-13
5 He also said to them, 'Suppose one of you has a ... Read More

Saint of the Day

Saint of the Day for October 8th, 2015 Image

St. Pelagia
October 8: Pelagia, more often called Margaret, on account of the ... Read More