Bank CEOs warn about a looming recession

During a congressional hearing, the CEO of Citigroup Global Markets Inc. addressed an investigation into allegations that the bank engaged in discriminatory practices against Armenian Americans when assessing credit card applications. The issue involved the bank applying different standards based on customer surnames, particularly those ending in “-ian” and “-yan,” and focused on the Glendale, California area, which has a significant Armenian American community.

The bank’s CEO expressed deep regret and apologized to the Armenian American community for not meeting fair lending standards. She stated that the bank had taken actions to rectify the situation and ensure it does not happen again. The investigation suggested that from 2015 through 2021, the bank had subjected Armenian American credit card applicants to extra scrutiny, including account blocks and demands for additional information, and even outright denials, under the assumption of a higher likelihood of fraudulent activity.