Citigroup Gets What It Deserves

For indispensable reporting on the coronavirus crisis and more, subscribe to Mother Jones' newsletters.


Citigroup today announced that its third-quarter earnings dropped 60 percent, in large part because of more than a billion dollars worth of bad subprime loans in its portfolio. But no one, especially not Citigroup, should be surprised that its loan portfolio is a minefield of rotten debt.

For years, Citigroup has preyed on the mentally retarded, the elderly, and the illiterate, particularly in the South, to push predatory subprime loans on people most ill-equipped to pay for them. Reporter Mike Hudson, now at the Wall Street Journal, has been chronicling this story for a decade, and in 2003, Southern Exposure magazine won a George Polk award for his investigative package on Citigroup and its history of assembling some of the country’s sleaziest subprime lending companies under one roof. Lots of people who got subprime loans from Citigroup and its subsidiaries ended up losing their homes long before the current foreclosure crisis.

Just five years ago, Citigroup agreed to pay $240 million to settle a lawsuit filed by the Federal Trade Commission over its predatory lending practices, and it has settled a host of private lawsuits over similar charges. The lawsuits never seemed to put even a hitch in Citigroup’s step, but it looks like all those bad loans are finally coming home to roost. Citigroup deserves to collapse under the weight of its scummy business practices, but it’s unfortunate that the reckoning threatens to bring down the rest of the economy with it.

Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.