This is presumably part of Citi’s global ad campaign to tell everyone to remain calm, all is well. Let’s hope it’s not also a response to some customers panicking and taking their money out.
As a reminder: Most of Citi’s deposits are not, in fact, guaranteed, at least not by the FDIC. Why? Because most of Citi’s deposits are outside the US. American depositors may not be panicking, therefore, but it’s not hard to believe that international depositors are.
23 November 2008
Citibank UAE today confirmed that all customer deposits at all its branches in the country are guaranteed by the UAE Government in line with the UAE Federal Cabinet’s decision of Oct 13, 2008 which guarantees bank deposits, including deposits with national banks and foreign banks which have significant operations in the UAE.
Mohammed Al-Shroogi, Managing Director for the Middle East and Chief Executive Officer for Citi in the UAE, said: “Citibank has been licensed in the United Arab Emirates since 1964. We remain the bank of choice for millions of depositors worldwide, evident in a strong deposit base (approximately $780 billion at the end of the third quarter) diversified across products and regions, with more than two thirds of it outside the U.S. including UAE.”
“Our universal banking business model has been proven to be robust and has certainly won the approval of major investors,” continued Mr. Al-Shroogi. “Over the past 15 months, Citihas added $75 billion in new capital: $50 billion through public and private offerings and $25 billion from the U.S. government’s TARP program. As a result, Citimaintans a very strong capital and liquidity position and a unique global franchise, including a growing Middle Eastern franchise.”
Citi has been in the Arab World for nearly 50 years and continues to view the region as critical to its global franchise. It is currently present in 10 Arab countries including Egypt, UAE, Lebanon, Jordan, Tunisia, Morocco, Algeria, Bahrain, Qatar and Kuwait.
Recently, the bank strengthened its regional coverage through key treasury, equity and investment banking appointments in Dubai. It has relocated a global co-head of investment banking to Dubai, and expanded debt markets business in Dubai by transferring from London its co-head of Europe, Middle East and African capital markets to oversee businesses including M&A, leverage and project finance.’
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