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Citigroup says some predecessor companies likely saw indirect financial benefits from slavery

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Citigroup says some predecessor companies likely saw indirect financial benefits from slavery

Some of the companies that formed what is now Citigroup likely benefitted financially from slavery in the 1800’s, the financial giant acknowledged Thursday, an admission that comes at a time when numerous institutions are re-examining their historic ro…

ByKEN SWEET AP Business Writer

FILE – A Citibank office is seen in New York on Jan. 13, 2021. Some of the companies that formed what is now Citigroup likely benefitted financially from slavery in the 1800s, the financial giant acknowledged Thursday, July 27, 2023, an admission that comes at a time when numerous institutions are re-examining their historic roots and the roles they played in slavery in the U.S. (AP Photo/Mark Lennihan, File)

The Associated Press

NEW YORK — Some of the companies that formed what is now Citigroup likely benefitted financially from slavery in the 1800’s, the financial giant acknowledged Thursday, an admission that comes at a time when numerous institutions are re-examining their historic roots and the roles they played in slavery in the U.S.

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In research conducted last year, Citi found that none of its predecessor companies directly purchased, sold, or held slaves. But the research did find that some of predecessor entities “likely indirectly profited from the institution of slavery through financial transactions and relationships with individuals and entities located or operating in the United States before 1866.”

Many of the nation’s biggest banks including Citi are conglomerations of financial institutions that have merged or bought each other over many years. Citi traces its founding back to 1812 when the City Bank of New York was created.

One of Citi’s most prominent presidents in the 19th Century was Moses Taylor, who did business in Cuba that used slave labor to farm sugar.

“Given that a significant portion of Taylor’s businesses was connected to the trade of sugar and its derivatives from Cuban plantations that used slave labor, City Bank of New York likely profited indirectly from enslaved labor in Cuba by engaging in transactions with Taylor and his businesses,” wrote Edward Skyler, Citi’s head of public affairs, in a blog post Thursday.

The bank also had found other directors or founders likely owned slaves through Lehman Brothers, which was founded in Alabama. Citi purchased parts of Lehman in the late 1990s.

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Citi is not the first bank to admit it had connections to the institution of slavery.

In 2005, JPMorgan Chase acknowledged that two of its predecessor banks had specific links to the slave trade. In JPMorgan’s case, two banks in Louisiana received thousands of slaves that were used as collateral.

The Charlotte, N.C.-based bank Wachovia, which failed in the 2008 financial crisis and was subsequently bought by Wells Fargo, also admitted in 2005 that it had roots back to slavery. Wachovia found the Bank of Charleston and Georgia Railroad and Banking Company both owned slaves.

Finance

IAEA Profile: Balancing Numbers and Dreams – A Career in Finance and Accounting

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IAEA Profile: Balancing Numbers and Dreams – A Career in Finance and Accounting

The IAEA profiles employees to provide insight into the variety of career paths that support the Agency’s mission of Atoms for Peace and Development and to inspire and encourage readers, particularly women, to pursue careers in STEM (science, technology, engineering and mathematics) or STEM-adjacent fields. Read more profiles of women at the IAEA.      

Hailing from Kinshasa, the capital of the Democratic Republic of Congo, Carmen Kibonge has taken a path shaped by a passion for numbers, a supportive family and a commitment to make a difference, which eventually led her to the IAEA.  

Kibonge was raised in a family that encouraged educational aspirations for both girls and boys, which is not always the case in her central African home country, where economic constraints often lead families to prioritize the education of boys. “In my family, it was expected that a girl would go to school. I know I was privileged, and I really appreciated the access to education,” she reflects. She was also inspired by her mother, an HR manager who was one of the few women in her community to pursue higher education.  

From an early age, Kibonge was captivated by mathematics and loved “cracking numbers”. Because of her mental arithmetic skills, her nickname at school was Ordi, after the French word for computer. But maths was not part of her original career aspirations. When she contemplated her future, a desire to help others and the work of international organizations in low and middle income countries like her own led her to consider a career in medicine. Her dream of becoming a paediatrician, however, shifted when she was confronted with the sight of blood in biology class. Nevertheless, the seed of wanting to work internationally had been planted. “I wanted to help people, not just in my country, but globally,” she says.  

Kibonge decided to pursue higher education in Austria, motivated by stories from friends who had lived there, as well as her love of classical music. Following her passion for numbers, she enrolled at the University of Vienna to study business administration with a focus on finance and accounting. Meanwhile, she supported herself by giving maths lessons.  

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The move to Vienna was not without its challenges, as Kibonge had to first learn German before starting her degree programme. She dedicated the first two semesters to intensive language study. “Those early days in Vienna were really challenging, but I really put my mind to it,” she recalls. “If you really want something, you can manage it.” Living in the city of classical music had its upsides though, and she often attended performances at the opera and philharmonic, impressed by how accessible they were even for students of modest means.  

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South Korea braces for Trump’s policies with biggest-ever export finance support

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South Korea braces for Trump’s policies with biggest-ever export finance support

SEOUL (Reuters) – South Korea pledged on Monday a record amount of financing support for exporters to mitigate any negative impact from changes in U.S. trade policies as Donald Trump was poised to be sworn in for his second presidency.

The government plans to provide 360 trillion won ($247.74 billion) worth of policy financing to exporting companies through state-run banks and institutions this year, according to a statement released by the finance ministry.

“There are concerns that external uncertainty will be heightened under the incoming U.S. administration and adversely affect exports,” the ministry said.

The ministry said it would also boost insurance support to guard against foreign exchange volatility to 1.4 trillion won this year, from 1.2 trillion won last year, and spending on government projects, such as trade fairs and delegations, to 2.9 trillion won from 2.1 trillion won.

Sectors particularly under threat of new U.S. policies are semiconductors and rechargeable batteries, the ministry said, whereas defence, nuclear energy and shipbuilding sectors are seen as more promising because of room for cooperation with the United States.

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U.S. President-elect Trump, who takes office later on Monday, has pledged to impose stiff tariffs on major trading partners, such as Mexico, Canada and China, which are also expected to affect South Korean companies running factories in those countries.

Economists say there are worries that the Trump administration will introduce trade policies against South Korea too, after Asia’s fourth-largest economy earned a record-high surplus of $55.7 billion in trade with the U.S. in 2024, up 25.4% from 2023.

The Korea International Trade Association, South Korea’s biggest group of exporting companies, projects export growth to slow to 1.8% this year. Last year, South Korea’s exports rose 8.1% to a record high of $683.7 billion, as sales to the U.S. rose 10.4%.

($1 = 1,453.1500 won)

(Reporting by Jihoon Lee; Editing by Shri Navaratnam)

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2025 World Economic Forum in Davos: What to watch

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2025 World Economic Forum in Davos: What to watch

The 2025 World Economic Forum kicks off its annual meeting from Davos, Switzerland, on January 20, 2025. This year’s theme is “Collaboration for the Intelligent Age.” Some of the world’s top business leaders will be there, and Yahoo Finance will speak with them. Executive Editor Brian Sozzi and Senior Reporter Jennifer Schonberger share what investors need to be watching from the landmark event.

Want to learn more about Davos? Check out What is Davos? Here is what you need to know.

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