Citigroup, currently ranking as the third-largest financial institution in the United States, has recently acknowledged its indirect connection to slavery in the 1800s as a contributing factor to its growth. In a blog post, the company highlights its efforts, alongside other major banks like JPMorgan Chase, to examine their historical ties and uncover any involvement in perpetuating racial inequities present today.
To delve into its own history, Citigroup embarked on an exploration two decades ago. At the time, no records were found to substantiate direct involvement in slave trade. However, a second initiative conducted last year revealed that the bank’s predecessors likely profited from financial transactions and relationships with individuals and entities associated with the U.S. slave trade.
One such predecessor, Moses Taylor, played a notable role in the mid-1800s as director and president of City Bank of New York, the institution from which Citigroup originated. Research conducted by Citigroup indicates that Taylor accumulated significant wealth from Cuba’s sugar plantations, which were sustained by slave labor.
It is important to note that many of the country’s leading banks, including Citigroup, are the result of mergers and acquisitions over the years. Citigroup traces its founding back to the City Bank of New York in 1812, with over 400 predecessor companies, 21 of which were established before the formal end of slavery in the United States on June 14, 1866.
Citigroup’s research into its legacy involved archives from Cornell University, a historical society in Mobile, Alabama, the New York Public Library, the Library of Congress, and the Alabama Supreme Court. This review revealed that Farmers’ Loan and Trust Company, later becoming Citibank, accepted a trust application for property owned by Henry Hitchcock, Alabama’s first attorney general, who enslaved 24 individuals. While the review concluded that Citi’s predecessor did not “own” any enslaved people on the property, it acknowledged the bank’s financial benefit from its dealings with Hitchcock.
Citigroup also discovered that it held bank accounts for individuals and companies operating in states that practiced slavery. It is worth mentioning that other major financial institutions, such as JPMorgan and Wachovia, have also acknowledged their historical ties to slavery.
In conclusion, while Citigroup recognizes the involvement of individuals who played important roles in its history with ties to the slave trade, it underscores the significance of acknowledging and learning from the past to create a more equitable future.
Author:
Khristopher J. Brooks is a dedicated reporter for CBS MoneyWatch, covering a wide range of business, consumer, and financial stories. His expertise encompasses areas such as economic inequality, housing issues, bankruptcies, and the business of sports.
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