Citibank Ethical Dilemma

Hi I would lie to have the information about Citibank facing several litigations for its accounting improprieties as well as the details of Citibank: Ethical Dilemma?

Citigroup has been confronting a few cases for its bookkeeping shamefulnesses. This has been the reason for serious harm to its notoriety all inclusive. To improve its hanging picture and rebuild its primary concern, Citibank, under the new authority of Chuck Prince, has upheld another arrangement of social esteems and morals to make more noteworthy straightforwardness in corporate administration.

Citigroup, the world's biggest money related administrations organization, whose center esteem is detailing comes about with precision and objectivity, has been confronting different administrative weights and prosecutions from investigative offices for its inclusion in an assortment of bookkeeping shamefulnesses. It was blamed for improper exchange (counting unapproved offering of securities), nearsighted perspectives for producing here and now benefit, for abusing its status in Europe, making organized back for Enron, endorsing of bonds for WorldCom, utilization of wrong means for allotting IPO, and savage loaning to retail clients. Because of these indictment and prosecution dangers, Sandy Weill's (CEO, Citigroup) validity was lost.

Chuck Prince, a topnotch legal counsellor, known for his uprightness succeeded Sandy Weill on October 1, 2003. Since his progression, Citibank is on a sticky wicket, confronting a personality emergency of sorts by battling on three particular fronts, namelyscandals, a declining primary concern on incomes, and the falling of stocks universally.

To upgrade its drooping picture and redesign its main concern, Citibank pushed new arrangements of preparing and advancement, correspondence and execution audit activities under the initiative of Chuck Prince. Moreover, Prince is attempting to build up another arrangement of social esteems and morals for compelling corporate administration to keep up Citibank's strength among worldwide budgetary organizations.

His increase is viewed as a panacea for enhancing corporate administration, however whether he is effective in wiping out the profound established debasement which is tormenting the arrangement of administration involves awesome concern.

Citigroup has been blamed for illegal tax avoidance exercises in Mexico by acting in conspiracy with different medication masters of the district. It made an extraordinary association with those `wealthiest clients' and gave them special access in exchanging of assets. It helped Raul Salinas, sibling of previous Mexican President Carlos Salinas de Gortari, by exchanging $90 to $100 mn out of Mexico to New York.

The goal and wellspring of assets exchange was camouflaged by setting up a different seaward company which gave unique and special access to Salinas by giving a mystery code name.

A guardian outsider delegate stored the cash in a Citibank account in Mexico and later exchanged the cash to New York, from where it was coordinated to Switzerland and London. Afterward, in March 1995, Salinas was captured in Mexico for his inclusion in the illicit exchange of assets.

Citibank: Ethical Dilemma

Publishing Date:
April, 2005

Product Name :
The IUP Journal of Corporate Governance

Product Type:
Article

Product Code:
IJCG 60504

Author Name:
IN Janardhan Rao and Shishir Kumar

Availability:
YES

Subject/Domain:
Management Studies

Download Format:
PDF Format

No. of Pages:
5

Price
For delivery in electronic format: Rs. 50; For delivery through courier (within India): Rs. 50 + Rs. 25 for Shipping & Handling Charges

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