President Donald Trump’s campaign to cut spending at every level of the government is creating a series of headache for his Go-Two banker: Citigroup Inc.
For years, the New York lender has mostly performed an estimated and large extent invisible work for the federal government, including the payment of corporate cards for the payment and payroll of civil servants and processing agency. Now its role as a financial middleman has brought the bank into a political quarrel, which he is keen to escape.
Citragroup has been nominated as a defendant with US agencies in at least six cases, claiming the government and the bank to take back the funds illegally. Meanwhile, Trump’s executive order on corporate cards of government employees in February held a thorough discussion in the bank, which earns millions of dollars from the card transactions.
Now the bank also comes out of the effects of the tariff of New Administration, which sent the stock of Citigroup down 12%on Thursday, which was the biggest one day fall since 2020.
In February, Trump laid a limited allegation of $ 1 on hundreds of thousands of government cards, while the Department of Government Efficiency of Elon Musk reviewed the spending in accounts, according to the update on X.
According to general service administration data, American civil servants spent about $ 13.8 billion on Citigroup Card in the last government’s financial year. About 20%of $ 70 billion charged by all its customers in the commercial card of Citragroup in 2024.
Rodney Lake, director of the Investment Institute of George Washington University, Rodney Lake said, “Citigroup, who has been trying to solve the concerns of regulators on data-management and risk controls since 2020, would want to be careful.”
“City is originally trapped in the middle,” the lake said. “I don’t think anyone would like to lose the US government as a customer, so it puts them in a difficult position with how to follow new demands.”
Citygroup’s Chief Executive Officer, Jane Fraser was for meetings on several issues in Washington last week, according to a person familiar with his journey program.
“We are very proud to bring their capabilities to call a customer and support many different federal agencies,” said Ed Skyler, head of enterprise services and public affairs at the bank, said in a statement. “We have been through many presidential infections and have always adapted to natural changes in priorities.”
The bank arranges several payment works for government agencies, including the Trump administration recently included frozen transfer. Among the suits brought by environmental groups, the city is nominated with the Environmental Protection Agency, which demanded freeze on billions of dollars for green initiatives.
According to a legal filing by Justice Climate Fund, in February, the bank was requested to request requests for requests for requests for requests for the Biden-era Greenhouse Gas Reduction Fund. It became clear that the bank’s behavior was “not voluntary, but the result of an extended and illegal pressure campaign by the EPA,” JCF argued.
The bank has tried to distance itself from the tasks of the administration, arguing that it is bound by the law to follow the instructions of the EPA and the Treasury, which asked it to stop the accounts. A judge has not yet given a decision on the fate of money in the dispute.
Citigroup was also caught among two powerful customers last month when the federal government reversed a $ 80 million payment from the Federal Emergency Management Agency to the Citigroup account in New York City. The move was called “unprecedented” by Brad Lander, city controller.
The administration said that initial transfer was a mistake and payment was being prevented to ensure that funds were not being used to facilitate criminal activity. Citygroup forgives the city’s overdraft fee after unexpectedly moved to Lal, and New York is now sueing the government to restore funds.
Citygroup is not alone among the corporations trying to avoid the IRE of the Trump administration.
The government has publicly criticized private institutions, saying that they oppose their policies, law firms prevent government work and cancel funds from universities. Trump has also claimed that the business done by large banks with conservatives is limited to single -handing the Bank of America Corp in January – an charge denied the company.
Even if the revenue is hit by frozen expenses, the citygroup is already conducive to the obstacles made by Trump. Like other federal contractors, after an executive order in February, a fleet of the target for diversity in its workforce was forced to cancel, which banned “illegal dei”.
With the help of Emily Biranbam, Zo Tilman, Aaron Gordon, Gregory Corte and Peter Jeffrey.
This article was generated from an automated news agency feed without amending the text.