This week has been one of change for Citibank (NYSE: C). Between massive job reductions and new fees, the bank is apparently having a hard time adjusting to a new regulatory environment. Making these sorts of adjustments is a tough process, and in addition to shedding jobs it appears Citibank will likely be shedding customers, too. With rates like these, you won’t need much more incentive to start examining other options.
Early in the week, CEO Vikram Pandit confirmed that Citibank would be laying off 4,500 workers, or about 2% of their worldwide workforce, according to Reuters India. This would appear to be a confirmation of the rumor we reported on a few weeks ago about Citi cutting approximately 3,000 jobs. Off the record, we were told that 3,000 is a good estimate of the job cuts. Apparently it wasn’t, which is bad news for about 1,500 Citi employees and their families.
And along the lines of what we were told back in November, many of the cuts will hit Citi’s proprietary trading desks, according to Reuters. The Volcker Rule, it would seem, is doing what it was supposed to, at the expense of hundreds of banking jobs.
In another move that is likely related to the Dodd-Frank Act, Citibank will be changing its fee structure today, as our own Simon Zhen reported earlier in the year. To rehash, here’s what you need to know.
The Citibank Account Package: This package of accounts with Citi had a monthly fee of $20 for those who do not keep a balance of at least at least $6,000 across all accounts. Now that minimum is $15,000, almost triple the old one.
Basic Banking Package: Until today, simply performing five transactions a month on this account would exempt you from the $8 monthly maintenance fee. Starting today, the fee has increased to $10, and customers will have to jump through far more hoops to avoid it. They must maintain a balance of $1,500 or higher across checking and savings, or make one direct deposit to their account (or a linked savings account) AND make a “qualifying” bill payment from Basic Checking.
EZ Checking: It used to be the case that EZ Checking had a $7.50 monthly maintenance fee that was waived for accounts over $1,500. Starting today, the fee doubles ($15), and the minimum to avoid the waiver quadruples ($6,000).
Access Account: The $3 monthly service fee on this account goes up to $10. No waivers on this one, folks.