Michael Klein, reported recently to be leaving Citigroup, of which Citibank is a part, is set to receive one of the largest payouts in the industry for a departing executive since the credit crunch started.
It is understood that Mr Klein will receive a settlement package from Citibank worth over USD42 million, made up of stocks and cash, with the proviso that he does not join a rival organisation before next October. The amount may cause consternation for the company since it sits uncomfortably with the position of banks and financial institutions saying they are struggling.
Citibank has seen many changes in recent months, with a new management structure now in place to try and steer the business back into profitability and financial stability following heavy losses on the back of the US sub-prime lending collapse.
Citibank parent Citigroup is understood to be under investigation by the financial regulator of the United States with regard to some potential breaches of securities law.
The issue revolves around the marketing and selling of what are called auction rate securities. These are a type of bond, most commonly used by municipal authorities when looking to generate funds and the question being looked into is whether the actual risks were understated by Citibank.
No comments have been forthcoming from Citibank so far regarding their discussions with the regulators. Instead they have a statement that says they have worked closely with all parties to make everything go smoothly.
The Alliance and Leicester Premier 21 account turned one year old today and to mark the occasion a ten percent interest rate offer has been reintroduced for new customers.
The ten percent offer on the Alliance and Leicester current account will be valid for the first GBP1,000 deposited and kept in the account for 12 months. After the first year the rate will revert to a base rate tracker.
The current account is available to customers aged between 16 and 21, with an interest free overdraft facility available to those over 18. An Alliance and Leicester spokesman believes that by concentrating their efforts on smaller markets such as this they can deliver a product better suited to their needs.
