Return to Current Issue | NPA Demands for Citigroup

NPA shark attack," and "Rubin = Loan Shark," exclaimed the signs. Toy sharks littered the ground and the chant, "C. Mack, take it back! We want Rubin," echoed down Mohawk Street as community leaders from across the nation descended on the home of a high-ranking Citibank official in January.

(A midwest region head honcho of Citigroup got more than 100 unexpected visitors at his Chicago home in mid-January as NPA groups, already together for the annual leadership meeting, took demands including an end to the financial conglomerate's predatory lending practices to his front door.)

While C. Mack, president and CEO of the Central Region of Citibank, peeked out his front door in the tony Chicago neighborhood, he did not leave the sanctuary of his home to confront the more than 100 angry people crowding his front doorstep calling for the end of discriminatory and predatory lending practices.

The goal of the hit was to send a message to Robert Rubin, chairman of Citigroup's executive committee, that "we're not going to sit back and let money and homes be taken away by predatory lending practices," in the words of one community leader.

"We're showing that there's nowhere for Rubin and Citigroup to hide," said Gale Cincotta of NPA. "While they've promoting themselves as a clean company, this group has been soaking people for money and setting them up for foreclosures."

A team of leaders from South Austin Coalition Community Council (SACCC), Des Moines Citizens for Community Improvement (CCI) and East Side Organizing Project (ESOP) told Mack through a megaphone that if he came outside to receive a letter addressed to Rubin, the group would leave.

The letter stated that NPA wants a meeting with Rubin by March 1.

"Mack now knows we won't drop this issue. It proves to Rubin that we will not take 'no' for an answer," said Sally Riggs, a community leader CCI in Des Moines.

While Mack didn't show, the Chicago Police Department did.

The police told leaders that if people left quietly, they would ensure Mack received the letter. As buses with the NPA groups were driving away, Mack left his entryway and took the letter from the police officers.

NPA and its affiliated community groups across the country have been organizing to stop sub prime lenders from making predatory loans for over two years. NPA conducted long unsuccessful negotiations with Citigroup ever since the institution's announcement in September to buy The Associates, the world's largest predatory subprime lender. Citigroup bought The Associates for $31 billion in November 2000. Citigroup is an $805 billion financial holding company that owns banks, insurance companies, and investment firms. Citigroup owns Citibank, the largest bank in the country. Citibank, which makes prime-rate loans and offers other banking services, has offices in 10 states & Washington, DC.

Citifinancial, a sub prime subsidiary for Citigroup, only makes high-interest loans and does not provide banking services. The combined ownership of The Associates and Citifinancial puts 2,450 high-interest lending offices in 48 states. The sub prime lender will be called Citifinancial.

Citifinancial targets poor and working folks. An analysis of 10 NPA cities showed that 70 percent of Citifinancial's subprime refinancing loans went to low- and moderate-income homeowners.