HOW TO SERVE LEGAL PAPERS ON CITIBANK

 

Citibank

Undisputed Legal | Process Service

Citigroup Inc. is an American multinational investment bank and financial services firm based in New York City. Citicorp and Travelers Group merged in 1998, with Travelers then separated from the firm in 2002. Citicorp owns Citibank along with other overseas subsidiaries, all of which are owned by Citi Holdings. Citigroup is headquartered in Delaware.

Fourth in size and one of the largest banking institutions is Citigroup, so predominant in the industry that it has almost double the assets of the fifth-largest bank.  The four biggest are JPMorgan Chase, Bank of America, Wells Fargo, and the “Big Four” (sometimes known as the Big Four combined a U.S. regional or domestic bank). The Financial Stability Board designates this bank as being systemically important, deeming it to be too large to fail. A major reason for this is that Citigroup has continually qualified in its bulge Bracket designation as one of the nine major investment banks.

Citibank is the consumer division of financial services multinational Citigroup. Citibank was founded in 1812 as the City Bank of New York, and later became First National City Bank of New York.  It is interesting to note that Citibank has had a highly distinguished history, notably financing war bonds for the War of 1812 and serving as a founding member of the financial clearinghouse in New York (1853) as well as underwriting the Union during the American Civil War, opening the first foreign exchange department of any bank and receiving a five million dollar deposit to be given to Spain for the US acquisition of the Philippines.

[1.0] HISTORY

In the 1970s, Citibank revolutionized the banking system by introducing the ATM, along with a number of other innovations, notable certificates of deposit, and compounded interest on savings accounts. The bank has dipped its hands into additional, slightly less positive financial dealings, as well. One of the first recipients of the Troubled Asset Relief Program (TARP) money during the 2008 housing crisis was Citi, which was given USD 25 billion by the federal government as compensation for mismanaging its mortgage assets.  The stock price had plunged from nearly $500 to $35 when the Secretary of the Treasury switched on the public faucet that gave the bank money. Citi’s shares have stayed in the double digits for a long time after several splits and reverse splits. The bank is a component of the ProShares UltraPro Short S&P500 ETF.

[1.2] HOW DOES CITIBANK WORK

Citi, which saw almost twenty billion in losses in 2008 due to doubling down on subprime mortgages at the onset of the financial crisis, set up two separate companies:  [A.] Citicorp and [B.[ Citi Holdings. Citicorp has been established as the core business but all of the companies and assets are kept under Citi Holdings to ensure that their value is maintained throughout time. Citicorp has distinct divisions for Citi’s “core” business (consumer banking, institutional customers, and corporate) that it controls completely. “Citibank” is the first of such divisions.  It offers basic banking services, such as keeping customer deposits, loaning money to small companies, and delivering basic financial advice. Additionally, Citi’s card business is home to one of the banks’ greatest profit margins as under Citicorp.

The second section of Citicorp is known as the institutional client group. Citi’s conventional investment banking includes the many corporate and securities loan services the firm offers. Citi acted as the principal financial adviser during the merger of Sprint Corp. (S) with SoftBank.  Similar to corporate departments in other non-bank businesses, Citicorp’s last division is its corporate department. This is an account used for day-to-day operations, payroll, and assets such as the bank’s own real estate holdings. But it is necessary, anyway

A very modest portfolio of around fifty billion assets (which equals 3% of Citigroup’s entire balance sheet) is managed by Citi Holdings. When Citi Holdings was in its prime, it managed to hold eight hundred billion USD in assets, making it the fifth-largest bank in the United States. On the other hand, Citigroup made the decision in Q4 2016 to stop presenting results for Citi Holdings and Citi Holdings alone in their reports.

[1.3] GLOBAL REACH

Citi operates in more than a hundred and fifty countries. Altogether, the operations of the entity are separated according to geographic region, with North America, Latin America, Asia Pacific, and Europe/the Middle East/Africa being the key groups. North America has been Citi’s most profitable region, especially for consumer banking, where it far outstrips the rest of the divisions. Further, credit cards have seen perpetuation as a steady course of profit for the company. 

Citigroup is the holding company for the following divisions: 

  1. Citigroup Global Markets, Inc.: Citigroup Global Markets Limited (UK), and Citigroup Global Markets Japan are broker-dealers and form one of the twenty-four original and primary dealers in United States Treasury securities.
  2. Citi’s Institutional Clients Group (ICG) is focused on private and public company investment and corporate banking and provides financial and advisory services for these firms and organizations. ICG has comprised five primary departments.
      • Capital Markets Origination is focused on capital-raising needs such as public offerings, private placements, and special purpose acquisition companies. 
      • Corporate & Investment Banking provides strategic and financing products and advisory services to multinational and local corporations, financial institutions, governments, and privately held businesses in more than 160 countries. It also provides client services such as mergers & acquisitions advice and underwriting of initial public offerings. 
      • Markets & Securities Services encompasses service providers for investors, such as custody, clearing, and exchange services, as well as investors themselves. It offers investment solutions, such as investment funds, through underwriting, sales, and trading various types of investment assets. Facilities offered include stock, commodity, currency, foreign exchange (FX), emerging markets, G10, muni, prime finance/brokerage, and CDO securities. Citi Research is one of the premier economic research organizations and helps its individual and institutional customers get insight into a wide range of economic sectors, regional markets, and product areas. This firm is known for publishing high-quality research papers with titles such as the following: Portfolio Strategist, Bond Market Roundup, U.S. Economics Weekly, International Market Roundup, Global Economic Outlook & Strategy, and the Global Equity Strategist.
      • Citi Private Bank advises equity investors, extremely high-net-worth individuals (UHNWIs) and families, and attorneys from around the globe all contribute to the investments. It offers customers access to the global investment markets via an open architecture platform of 800 private bankers and professional investors that operate in 46 countries and jurisdictions. Over USD250 billion in assets are managed by the organization. To get a waiver, law firm groupings and other clients are required to meet the minimum net worth criterion of USD 25 million in liquid assets. 
      • Treasury and Trade Solutions (TTS) The firm serves enterprises, governments, and organizations in the United States and 140 countries via cash management, trade, and securities services. TS handles over three trillion dollars every day in worldwide transactions. This supports 99% of the world’s Fortune 100 firms and 85% of the world’s Fortune 500 corporations. Institutions utilize TTS to help support their treasury operations by partnering with export credit agencies and development banks for payments, collections, liquidity, and investments. This corporation also offers supply chain finance solutions and medium- and long-term worldwide finance solutions in numerous sectors. More than 60% of Transaction Services’ overall revenues are generated by clients that do business in ten or more countries.

[2.0] HOW TO SERVE A SUBPOENA ON CITIBANK

Most companies in the course of doing business must provide financial and other information to various federal, state, and local government agencies, as well as to private parties in order to do business and adhere to Process Service regulations. A further additional point to note is that Citigroup affiliates and subsidiaries fall within different regulated institutions, such as banks, registered brokers, futures commission merchants, investment advisors, and several other authorities. Citigroup and similar affiliates and subsidiaries have many Process Service requests, subpoenas, and orders issued to them pertaining to their regulated operations. Other requests made to Citigroup and Related Parties by federal and state law enforcement agencies include, for example, federal and state prosecutors, the DOJ’s Asset Forfeiture and Money Laundering Section, and the Treasury’s Financial Crimes Enforcement Network (FINCEN).

Subpoenas may be served according to Process Service guidelines at any Citibank branch. Essentially, the branch will accept Process Service as done to the care of the Citibank Legal Services department. It must be known that subpoenas in specific must be sent to the Subpoena Compliance Department. Further, Process Service information may be procured by contacting Citibank over the phone. A subpoena can also be faxed to the Citibank entity, without the necessity to serve the original by mail. 

Citibank will only respond to subpoenas if they are served correctly and adhered to Process Service guidelines. All subpoenas must be served to Citibank, identifying the North American branch considering the different Process Service requirements for out-of-state subpoenas. It is necessary for every subpoena to include the identity of the court from which the subpoena was issued as well as the identity of the court in which the underlying action is pending, complete with a proper citation of the title of the action and the civil action number for adequate Process Service. Citibank does not demand personal service.

For deposit account records like checking, savings, and state matters, Process Service must be done to the care of Citibank Legal Services. For any deposit over USD 100, banks must keep records for at least five years. Banks may retain these records for longer periods if they choose to do so.

Additionally, an application to withdraw or change the subpoena may be filed with the Supreme Court, supplemented by a move to quash or change a document, or to amend the subpoena. Additionally, the grant or denial of a petition to cancel or modify may be subject to the requisite Process Service requirements via the identification of reasonable facts that might impact the approval of this change.

Whether a person intends to serve the Secretary of State with reference to Citibank or use the previous addresses, it is critical to be aware of where their Process Service documents will be sent. To proceed with Process Service, the server should have an authorized person signed as a receiver. If they refuse to accept the Process Service, further rules for proper Process Service apply to the server. To be effective, it is essential to verify if the summons was properly served and accepted in accordance with Process Service with special vigilance to be exercised in accordance with the state’s Rule of Civil Procedure with the envelope. Thus, as long as the server met with the required notice of Process Service and evidence delivery requirements on Citibank, the server would have properly served all papers on the parties, and the lawsuit could be commenced or the subpoena responded.

[2.1] HOW DOES CITIBANK DEAL WITH PERSONAL INFORMATION REQUESTS

Citibank uses the Personal Information they collect to send users technical notices, updates, security alerts, and support and administrative messages (such as changes to our terms, conditions, and policies) and to respond to comments, questions, and customer service requests, although they may also use it in order to analyze trends, usage, and activities in connection with their services;

[2.2] HOW PERSONAL INFORMATION IS SHARED

During at least the past twelve months, Citibank has disclosed Personal Information for the following business purposes or in order to support certain Citi entities’ use of information in accordance with this Notice. Further, third-party service providers, who provide services such as website hosting, data analysis, information technology, and related infrastructure provision, customer service, processing their transactions, e-mail delivery, auditing, and other services. 

It is also important for Citibank to provide personal information in order to cooperate with public and government authorities and law enforcement, and to respond to their requests, or to provide them with information as required. Additionally, information may be taken for legal purposes in order to monitor compliance with and enforce their terms and conditions or in conjunction with a sale or business transaction, such as to an acquiring entity or its advisors in the event of any reorganization, merger, sale, joint venture, assignment, transfer or other disposition of all or any portion of our business, assets, or stock (including in connection with any bankruptcy or similar proceedings).

Citibank is also authorized to provide aggregated or de-identified information with the caveat that it cannot reasonably be used to identify these users to help deliver products, services, and content that are tailored to the users of their services and for other purposes. Citibank may transfer information to Citi-affiliated companies or other parties throughout the world. It must be noted that personal information is not knowingly collected from children under the age of thirteen. 

If a subpoena has been levied upon Citibank, which may require it to disclose Confidential Information, Citibank is required to be provided with written notice and documentation thereof as soon as practicable. 

The types of personal information that is collected and shared depend on the product or service that the individual has with Citibank.  This information can include: [A.]  Social Security number and income, [B.] account balances and employment information, and [C.] credit history and transaction history. 

Interestingly, Citigroup was one of the five major financial companies that failed the stress tests conducted by the Federal Reserve on March 26, 2014. Citigroup failed because it failed to tackle qualitative issues even though the regulators had previously identified them as risks in the earlier stress test. In the study, Citigroup was said to have missed projecting revenues and losses under a stressed scenario for some worldwide operations and the firm’s capacity to accurately produce stress testing scenarios that reflected all aspects of the company’s operations.

Citi passed its first CCAR test on March 11, 2015, and was allowed to boost its dividend to 5 cents per share and reveal a seven billion share buyback program.

For more information on serving legal papers, contact a Professional Process Service (800) 774-6922. Representatives are available Monday-Friday 8 am – 8 pm EST.  If you found this article helpful, please consider donating.  Thank you for following our blog, A space dedicated to bringing you news on breaking legal developments, interesting articles for law professionals, and educational material for all. We hope that you enjoy your time on our blog and revisit us!  We also invite you to check out our Frequently Asked Questions About Process Servers.

Sources

1. FRB: Large Commercial Banks– March 31, 2021, https://www.federalreserve.gov/releases/lbr/current/ (last visited Jun 2, 2021) 

2. 2019 165(d) Resolution Plan: Citigroup Material Legal Entities

3. with USD 50 million in war bonds

4. U.S. Securities & Exchange Commission. “Form 10-K, Citigroup Inc.” Accessed Mach 31, 2021.

5. (605) 331-1662

6. Citibank Online, https://online.citi.com/US/ag/contactus (last visited Jun 1, 2021) 

7. Credit Card Subpoenas go to:

Citibank NA c/o Legal Services
701 E. 60th Street North
Mail Code 1251
Sioux Falls, SD 57117
Fax: 347-809-6937

8. Berrios v. Citibank N.A., Civil No. 11-1224 (JAF), (D.P.R. May. 7, 2012)

9. 5800 South Corporate Place
Mail Code 451
Sioux Falls, SD 57108
Fax: (347) 809-6937

Citibank moved its credit card operations to Sioux Falls, South Dakota in 1981 after the state eliminated caps on interest rates. In 2013, Citibank employed 2,900 in Sioux Falls and is one of the largest employers in the city. In 2018, they began building a new headquarters that was to be 150,000 square feet of office space on a 19-acre campus.

Subpoena Compliance Dept: 

10. a list of Citi entities who may access your Personal Information can be found at http://www.sec.gov/Archives/edgar/data/831001/000083100115000043/citi-exhibit2101x12312014.htm

11. From the Citibank privacy website …”to protect our rights, privacy, safety, or property, and/or that of our affiliates, you or others, to protect against fraud, crime, illegal activity, anti-money laundering, or anti-terrorism, and for risk management purposes”

12.Benoit, David (13 March 2012). “Stress Tests: Official Statements From Banks”. The Wall Street Journal. 

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