Why is UAE temporarily closing branches of Citibank?
In view of the increasing tension in the Middle East, global financial institutions have started taking precautionary measures, and the American bank Citibank has announced the temporary closure of all its branches and financial centres in the United Arab Emirates until March 14.
According to the bank’s website, the affected branches will reopen from March 16; however, the branch located in Dubai’s Mall of the Emirates will remain open as usual. Earlier, Citibank had instructed its staff in the Dubai International Financial Centre and the Oud Mitha area to vacate their offices and work from home until further notice.
Meanwhile, global bank HSBC has also closed all its branches in Qatar indefinitely due to security concerns. The bank said in a notice that the decision was taken to ensure the safety of staff and customers.
History of Citibank
The Citibank of New York was founded on June 16, 1812. The first president of the City Bank was the statesman and retired Colonel, Samuel Osgood. After Osgood’s death in August 1813, William Few became President of the bank, staying until 1817, followed by Peter Stagg (1817–1825), Thomas Smith (1825–1827), Isaac Wright (1827–1832), and Thomas Bloodgood (1832–1843).
After the Panic of 1837, Moses Taylor acquired control of the company. During Taylor’s ascendancy, the bank functioned largely as a treasury and finance center for Taylor’s own extensive business empire. Later presidents of the bank included Gorham A. Worth (1843–1856), Moses Taylor himself (1856–1882), Taylor’s son-in-law Percy Rivington Pyne I, and James Stillman (1891–1909).
In 1831, City Bank was the site of one of America’s first bank heists when two burglars, James Honeyman and William J. Murray, made off with tens of thousands of dollars’ worth of bank notes and 398 gold doubloons, the equivalent of $52 million in 2013 currency.
The bank financed war bonds for the War of 1812, serving as a founding member of the financial clearinghouse in New York (1853), underwriting the Union during the American Civil War with $50 million in war bonds, opening the first foreign exchange department of any bank (1897), and receiving a $5 million deposit to be given to Spain for the US acquisition of the Philippines (1899).
In 1865, the bank joined the national banking system of the United States under the National Bank Act and became the National City Bank of New York. By 1868, it was one of the largest banks in the United States. The bank became the largest bank in New York City following the Panic of 1893. Two years later, in 1895, it had become one of the largest banks in the U.S.
Recently Iran has threatened to target US banks across the region in retaliation of the attack on Iran central bank in Tehran.
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