Each year, Corporate Accountability International asks the public to vote for the “worst of the worst” corporations, and the leading vote getter is added to its Corporate Hall of Shame. The non-profit organization then launches grassroots actions at the “winning” company.
Citigroup—one of the Wall Street banks engaged in the reckless lending and trading practices that brought the U.S. economy to its knees in 2008 , and then received the biggest federal bailout of nearly half a trillion dollars—is among ten nominees for this year’s award and it deserves to be named the worst corporation of 2015. Here’s why:
- Last December, the bank helped to gut a key provision of the Dodd-Frank Act that would have required it to stop risky derivatives trading. Citigroup’s lobbyists drafted the legislation to water down the Dodd-Frank Act and got it passed into law by including it in a federal spending bill to prevent a government shutdown.
- Citigroup senior executives receive a golden parachute if they voluntarily resign to wield their influence in a government-confirmed position. Among its alumni are U.S. Trade Representative Michael Froman who collected more than $4 million when he joined the federal government. Froman negotiated the Trans-Pacific Partnership Agreement, raising concerns that he may be beholden to Citigroup. The AFL-CIO is fighting back against Citigroup’s government service golden parachutes with a shareholder proposal that will prohibit the controversial pay practice.
- Last year, Citigroup was charged with selling bad mortgages to investors and agreed to a $7 billion settlement with the Justice Department, including a $4 billion fine—the largest of its kind to settle a federal probe of mortgage fraud.
Cast your vote to nominate Citigroup as the worst offender in the Corporate Hall of Shame.