1,000 Brokers Lose Jobs After Citigroup Acquires Associates
About 1,000 brokers have lost their jobs following the Citigroup Inc., New York, acquisition of Associates First Capital Corporation, a Delaware company that was headquartered in Irving, Texas.
In a recent memo to the employees of Citigroups consumer-lending division, Robert Willumstad, chairman and CEO of CitiFinancial, announced that “relationships with nearly 1,000 brokers were suspended for various reasons.”
Associates was the parent company of Associates Corporation of North America, both of which were merged with Citigroup when the latter acquired the two in November, according to the Federal Trade Commissions Web site.
According to Willumstad, relationships with the brokers were suspended as part of the “implementation of policy enhancements that we announced last year when we purchased Associates.” The bulk of the memo is about the dropping of single-premium credit insurance, a product often attacked by consumer advocates (see story on page 30).