citifinancial layoffs
Sources

Columbus, OH

#4322 Dec 31, 2011
AP and Reuters is reporting that as of 1-3-12, Citigroup will be ceasing operations in whole of its U.S. based Citifinancial Servicing business unit. An insider noted that the existing portfolio which exceeds $4.5 billion in delinquent mortgages and personal loans will be sold in a "cash swap" to Santander, a Central American company that purchased the formerly known "Citifinancial Auto" in early 2011. Messages for media relations personel were left unreturned at Citigroup. It is believed that Citigroup has entered into an agreement to sell 75% of its "One Main Financial" business unit to fledgling HSBC Finance a member of HCBC Group North America located in Buffalo, New York. It is unknown what is to come of the remaining 25% of Citifinancial Servicing's holdings. There is speculation that that the business unit will file for bankruptcy protection which will result in a $984 million dollar charge as part of the deal between HSBC and the US government. HSBC has experience in this arena as they previuosly held the label as the largest subprime consumer lender in the US before ceasing operations. HFC/Beneficial purchased by HSBC in 2003 closed its doors in late 2009 due to financial pressures that swept across the United States and Europe. For all intents and purposes, there will no longer be a presence in the US of a behemoth subprime lender with a brick and mortar approach. Reportedly, the two deals will result in the loss of 2,650 jobs across the two business units of Citigroup. Also, the two deals will bring the saga of the "Bad Bank" to a close with regard to subprime lending units of Citiroup's US operations. In early 2011, Citi unloaded its unprofitable business unit Citifinancial Auto. Now with the announcement of these two deals today, Citigroup rids itself of the "Bad Bank" portion of its US operations which historically has been bleeding cash since 2009.
Schecky

Cincinnati, OH

#4323 Jan 1, 2012
Sign of armageddon
Night Owl wrote:
There will be an additional 300 branches closing. This is going to be bad, very bad.:(
Anonymous

Cincinnati, OH

#4324 Jan 1, 2012
?
Interested

United States

#4325 Jan 3, 2012
When are employees going to be told ?
CitiLuver

Hamilton, OH

#4326 Jan 3, 2012
No word yet today on "Sources" post. When is this thing gonna unfold?!?
When Elephants Fly

Arlington, TX

#4327 Jan 3, 2012
This is nothing but a lame fictional blog by “Sources” who has no sources unless imagined while under the influence of spiked eggnog. There are numerous untruths and distortions in this post, so many that that all cannot be addressed. Santander Consumer USA recently bought the rest of the Citi Holdings auto loan portfolio that SCUSA was doing the servicing.

There are no current discussions with Santander, a bank base in Spain, to purchase any of the loans held by CitiFinancial or One Main. HSBC Financial is not interested in handling consumer finance under any circumstance when they are slowly working down their legacy loan book. There is no news report on Reuters or AP websites that contains any news about One Main Financial or CitiFinancial.
Wow41

United States

#4328 Jan 3, 2012
Wow is this person part of upper management that they know who they are talking to about the sale? I would not think that anyone on the site would really know what Citi is going to do because we don't get that kind of information.... Maybe i am wrong!!!!...
When Elephants Fly

Arlington, TX

#4329 Jan 3, 2012
Not in management, but close enough to know about current developments. None of the info that the "Source" posted is not happening.
Wow41

United States

#4330 Jan 3, 2012
If you are that close why don't you tell if we are going to employed this time next year... You know since you are that close......
When Elephants Fly

Arlington, TX

#4331 Jan 3, 2012
If I told you it would be a lie. They are still trying to sell One Main, nothing close to a deal yet. SCUSA & HSBC is not involved in any talks.
Wow41

United States

#4332 Jan 3, 2012
What i was asking was...Will we have jobs this time next year at citifinancial servicing inc........
Wow41

United States

#4333 Jan 3, 2012
Hello....
Blissfully ignorant

United States

#4334 Jan 3, 2012
Don't miss this....
Confirmed

Columbus, OH

#4335 Jan 4, 2012
All I have to say about "Sources" is that My "In Law" works in the "executive wing" in Baltimore and confirmed to me that they have been attending meetings in Buffalo with interested party in both business units. Hello --- HSBC North America is based in Buffalo. I don't know what sources that "sources" has but I do know that my family does not lie to me !

Hey sources, you live in Ohio too. We should go out for a drink. What's your sign?
When Elephants Fly

Arlington, TX

#4336 Jan 4, 2012
Have fun taking yourself out for a drink!
Confirmed wrote:
All I have to say about "Sources" is that My "In Law" works in the "executive wing" in Baltimore and confirmed to me that they have been attending meetings in Buffalo with interested party in both business units. Hello --- HSBC North America is based in Buffalo. I don't know what sources that "sources" has but I do know that my family does not lie to me !
Hey sources, you live in Ohio too. We should go out for a drink. What's your sign?
Wow41

United States

#4337 Jan 4, 2012
How are you gonna comment on someone else's comment when you have not even answered my question....
Still Here

Hampstead, MD

#4338 Jan 4, 2012
Confirmed wrote:
All I have to say about "Sources" is that My "In Law" works in the "executive wing" in Baltimore and confirmed to me that they have been attending meetings in Buffalo with interested party in both business units. Hello --- HSBC North America is based in Buffalo. I don't know what sources that "sources" has but I do know that my family does not lie to me !
Hey sources, you live in Ohio too. We should go out for a drink. What's your sign?
The shear fact that you or your relative call it the "executive wing" shows you or they have ZERO knowledge. Propaganda...HSBC couldn't get rid of their own assets, surely they wouldn't want to take on more...oh and what happened to us being closed down on 1/3? As far as I know I am going into work tomorrow which shows you that "sources" doesn't know anything either (no AP or Reuters release on anything that "sources" attributed to in their statement)
When Elephants Fly

Arlington, TX

#4339 Jan 5, 2012
Wow41 wrote:
How are you gonna comment on someone else's comment when you have not even answered my question....
I’m sorry Wow41; I don’t have a crystal ball. With the recent negotiations on a sale falling apart there is three scenarios that could play out keeping in mind that Pandit is still determined to rid Citi of certain businesses and one of the biggest is One Main:
1. Spin-off One Main.
2. Shrink & eventually shut down the branches and service out the book as HSBC has done.
3. Shrink the business to severe downsizing levels and then sell off a much smaller business just as AIG did with American General Finance after rebranding them as Springleaf.

In all three above the need for servicing would still exist, but who knows for how many employees that will be needed and for how long. It is a shame as there is a need for One Main’s finance products with even less competition in this market. As the economy turns for the better there will be millions of potential customers with dings on their credit that occurred during the economic downturn. Where will they go when they can’t get loans through their very cautious lending banks? There will always be a sub-prime market and it can be profitable with tightened lending practices.
Wow41

United States

#4340 Jan 5, 2012
Would that include Cfs too?
When Elephants Fly

Arlington, TX

#4341 Jan 6, 2012
I guess that would depend which way they would go. Another option would be to roll everything back into one business and compete for business accepting the fact that it would cost Citi too much money to unload this particular business. I doubt this would happen as long as Pandit is the CEO even though they had Mortgage in Holdings at one time and took it back out accepting the fact that there was no way for it to be cost effective in trying to unload it.
Wow41 wrote:
Would that include Cfs too?

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