November 24, 2008
Citi Adds $40 Billion of Capital Benefit through Agreement with U.S. Treasury, Federal Reserve, and FDIC
Citi today announced that it has reached an agreement with the U.S. Treasury, the Federal Reserve Board, and the Federal Deposit Insurance Corp. (FDIC) on a series of steps to strengthen Citi's capital ratios, reduce risk, and increase liquidity, as described below:
CAPITAL
The U.S. Treasury will invest $20 billion in Citi preferred stock under the Troubled Asset Relief Program (TARP).
Citi will issue an incremental $7 billion in preferred stock to the U.S. Treasury and the FDIC as payment for a government guarantee on $306 billion of securities, loans, and commitments backed by residential and commercial real estate and other assets.
As a result of the asset guarantee, the $306 billion portfolio will have a new risk weighting of 20%, thus freeing up an additional $16 billion of capital to the company.
Citi will issue warrants to the U.S. Treasury and the FDIC for approximately 254 million shares of the company's common stock at a strike price of $10.61.
Citi also has agreed not to pay a quarterly common stock dividend exceeding $0.01 (one cent) per share for three years effective on the next quarterly common stock dividend payment.
The program significantly strengthens Citi's key capital ratios by generating approximately $40 billion of capital benefits as follows:
$20 billion from the TARP investment.
$3.5 billion, the portion of the $7 billion of preferred stock fee recognized for capital purposes.
$16 billion of capital benefits resulting from the asset guarantee.
November 24, 2008
Citi Finalizes SIV Wind-down by Agreeing to Purchase All Remaining Assets
In order to complete the wind-down of the Citi-advised Structured Investment Vehicles ("SIVs"), Citi announced today that, in a nearly cashless transaction, it has committed to acquire the remaining assets of the SIVs at their current fair value, estimated to be approximately $17.4 billion, net of cash, as compared to $21.5 billion at September 30, 2008. The decline primarily reflects asset sales and maturities of $3.0 billion and a decline in market value of $1.1 billion since the end of the third quarter 2008. Citi will record these assets as Available for Sale. As a result of the transaction, Citi's GAAP assets will be reduced by approximately $6 billion and risk-weighted assets will be increased by approximately $2 billion.
November 13, 2008
Statement From The Citi Board of Directors
The Board of Directors of Citigroup Inc. today reiterated its full support for the company's Chairman, Sir Win Bischoff, and said it looks forward to his continued leadership. This morning's Wall Street Journal report to the contrary is completely erroneous.
October 20, 2008
Citigroup Declares Dividends
The Board of Directors of Citigroup today declared a quarterly dividend on the company's common stock of 16 cents per share, payable on November 26, 2008, to stockholders of record on November 3, 2008.
The Board also declared dividends on preferred stock as follows:
6.5% Non-Cumulative Convertible Preferred Stock, Series T, payable November 17, 2008, to holders of record on November 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full convertible preferred share, will be paid $.8125 for each receipt held.
8.125% Non-Cumulative Preferred Stock, Series AA, payable November 17, 2008, to holders of record on November 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.5078125 for each receipt held.
8.40% Fixed Rate/ Floating Rate Non-Cumulative Preferred Stock, Series E, payable October 30, 2008, to holders of record on October 20, 2008. Holders of depositary receipts, each representing one-twenty-fifth of a full preferred share, will be paid $42.466666667 for each receipt held.
8.50% Non-Cumulative Preferred Stock, Series F, payable December 15, 2008, to holders of record on December 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.53125 for each receipt held.
October 16, 2008
Citi Reports Third Quarter Net Loss of $2.8 Billion, Loss Per Share of $0.60
Citigroup Inc. today reported a net loss for the 2008 third quarter of $2.8 billion, or $0.60 per share, based on 5,342 million shares outstanding. Results included $4.4 billion in net pre-tax write-downs in Securities and Banking, $4.9 billion in net credit losses, and a $3.9 billion net charge to increase loan loss reserves.
October 09, 2008
Citi Ends Negotiation with Wells Fargo on Wachovia Transaction
Citi announced today that it had reached no agreement with Wells Fargo following several days of discussions about matters related to Wachovia. The dramatic differences in the parties' transaction structures and their views of the risks involved made it impossible to reach a mutually acceptable agreement.
October 08, 2008
Citi, Wachovia, and Wells Fargo Agree to Extend Litigation Standstill until 8 AM Friday
Citi Wachovia and Wells Fargo, in consultation with the Federal Reserve, announce the extension until 8 a.m., ET, on Friday, October 10, 2008, of their standstill agreement of October 6, 2008.
October 08, 2008
Tata Consultancy Services To Acquire Citigroup Global Services for $505 million
Tata Consultancy Services a leading IT services, business solutions and outsourcing firm, and Citigroup Inc. (Citi) a leading global financial services company, today announced that they have reached an agreement for TCS to acquire all of Citi's interest in Citigroup Global Services Limited (CGSL), the India-based captive business processing outsourcing (BPO) arm of Citi for all cash consideration of approximately $505 million, subject to closing adjustments. In addition to the sale, Citi has signed an agreement for TCS to provide, through CGSL, process outsourcing services to Citi and its affiliates in an aggregate amount of US$2.5 billion over a period of 9.5 years. The agreement builds upon the existing relationship between Citi and TCS whereby TCS provides application development, infrastructure support, help desk and other process outsourcing services to Citi.
October 06, 2008
Citi, Wachovia, and Wells Fargo Agree to Litigation Standstill Effective Until Noon Wednesday
Citi Wachovia and Wells Fargo in consultation with the Federal Reserve, announce the following agreement.
Citi, Wachovia, and Wells Fargo have agreed to:
A standstill of all formal litigation activity effective immediately;
Cease any formal discovery activities, and
Cooperate in good faith to agree among themselves to secure orders where necessary in all applicable cases in all jurisdictions tolling any schedules for the filing of litigation papers or court appearances or any other formal litigation deadlines, with the goal of preserving the status quo during the litigation standstill period.
This standstill agreement will terminate at noon on Wednesday, October 8, 2008, unless otherwise extended.
Citi Delivers Executed Copy of Its Agreement with Wachovia to Wachovia's Counsel
Citi today issued the following update on its transaction with Wachovia:
At the time the Wachovia/Wells Fargo & Co. transaction was announced, Citi and Wachovia had agreed and were simply finalizing documents. On Sunday night, October 5, Citi delivered an executed copy of its agreement with Wachovia to Wachovia's counsel.
Citi Brings Complaint against Wachovia & Wells Fargo for Bad Faith Breach of Contract & Tortious Interference
Citi today announced it has filed a complaint against Wachovia Corporation, Wells Fargo & Co, and the directors of both companies. In the complaint brought on Saturday October 4th and filed with the Supreme Court of the State of New York today, Citi is seeking more than $20 billion in compensatory damages and more than $40 billion in punitive damages from Wells Fargo for tortious interference with Citi's contract with Wachovia. Citi is seeking relief from Wachovia for its bad faith breach of that contract
October 04, 2008
Citi Granted Emergency Injunctive Relief Extending Exclusivity Agreement between Citi and Wachovia
Citi tonight was granted emergency injunctive relief extending the Exclusivity Agreement between Citi and Wachovia Corp. until further order of the court. This relief was granted over the objection of Wachovia. Justice Charles Ramos of the Supreme Court of the State of New York issued the order.
October 03, 2008
Citi Statement on Wachovia's Breach of Exclusivity Agreement
Citi today issued the following statement:
Wachovia's agreement to a transaction with Wells Fargo is in clear breach of an Exclusivity Agreement between Citi and Wachovia. In addition, Wells Fargo's conduct constitutes tortious interference with the Exclusivity Agreement.
September 29, 2008
Citi and Wachovia Reach Agreement-in-Principle for Citi to Acquire Wachovia's Banking Operations in an FDIC-Assisted Transaction
Citi today announced it has reached an agreement–in-principle to acquire all of the banking subsidiaries of Wachovia Corporation, creating the largest U.S. bank by total deposits. Under the terms of the agreement-in-principle, Citi will pay Wachovia approximately $2.16 billion in stock and assume Wachovia senior and subordinated debt, totaling approximately $53 billion. Citi will acquire more than $700 billion of assets of Wachovia's banking subsidiaries, and related liabilities. The Federal Deposit Insurance Corporation (FDIC) has agreed to provide loss protection in connection with approximately $312 billion of mortgage-related and other Wachovia assets. Citi is responsible for the first $30 billion of losses on this portfolio, and expects to record these expected losses under purchase accounting upon closing of the transaction. Citi is also responsible for the next $12 billion in losses up to a maximum of $4 billion per year for the next three years. Citi has also agreed to issue to the FDIC preferred stock and warrants with a combined value of approximately $12 billion. The FDIC has agreed to be responsible for any further losses on this portfolio.
September 22, 2008
Citi Announces Key Senior Executive Appointments
Citi today announced the appointments of Mike Corbat as Chief Executive Officer of its Global Wealth Management unit (GWM) and Edward "Ned" Kelly as Head of Global Banking for the Institutional Clients Group (ICG). Sallie Krawcheck has decided to leave Citi to pursue other opportunities and will remain as Chairman of GWM through the end of the year to ensure an orderly transition. Mr. Corbat and Mr. Kelly will report to John Havens, Chief Executive Officer of ICG.
September 15, 2008
Citi Statement Regarding Lehman Brothers Bankruptcy Filing
Citi issued the following statement today about its role as indenture trustee of Lehman Brothers bonds:
"Citibank N.A. is listed in the Lehman Brothers bankruptcy filing as an indenture trustee for bond debt of approximately $138 billion under Lehman Brothers Holdings Inc. Senior Notes. Citi wishes to clarify that our role in this issue is administrative in nature and does not represent exposure for Citi to Lehman. Any assertions to the contrary are false."
Consortium of Global Commercial and Investment Banks Takes Series of Actions to Help Enhance Liquidity and Mitigate Unprecedented Volatility in Capital Markets
The banks are working together to do the following:
First, to assist in maximizing market liquidity through their mutual commitment to their ongoing trading relationships, dealer credit terms and capital committed to markets.
Second, to establish a collateralized borrowing facility, which ten banks (Bank of America, Barclays, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Merrill Lynch, Morgan Stanley, and UBS) have committed to fund for $7 billion each ($70 billion in total). The facility will be available to these participating institutions for liquidity up to a maximum of one third of the facility for any one bank. It is anticipated that the size of the facility may increase as other banks are permitted to join the facility.
Third, to help facilitate an orderly resolution of OTC derivatives exposures between Lehman Brothers and its counterparties. This effort included opening the OTC derivatives market for trading this Sunday afternoon.
July 22, 2008
Citi Rotates Board Committee Chairs and Membership
The following committee changes are effective immediately:
Richard Parsons will Chair the Nominations and Governance Committee and serve as lead director of the Board. Mr. Parsons previously chaired the Personnel and Compensation Committee.
Alain Belda will Chair the Personnel and Compensation Committee. Mr. Belda previously chaired the Nominations and Governance Committee and served as lead director.
John Deutch will Chair the Audit and Risk Management Committee. Mr. Deutch will continue as Chair of the Audit and Risk Management Corporate Subcommittee. He will also join the Executive Committee.
Michael Armstrong, in addition to continuing to serve on the Nominations and Governance Committee and the Executive Committee, will become a member of the Personnel and Compensation Committee.
Lawrence Ricciardi will become a member of the Audit and Risk Management Committee
July 21, 2008
Citigroup Declares Dividends
The Board of Directors of Citigroup today declared a quarterly dividend on the company's common stock of 32 cents per share, payable on August 22, 2008, to stockholders of record on August 4, 2008.
The Board also declared dividends on preferred stock as follows:
6.5% Non-Cumulative Convertible Preferred Stock, Series T, payable August 15, 2008, to holders of record on August 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full convertible preferred share, will be paid $.8125 for each receipt held.
8.125% Non-Cumulative Preferred Stock, Series AA, payable August 15, 2008, to holders of record on August 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.5078125 for each receipt held.
8.50% Non-Cumulative Preferred Stock, Series F, payable September 15, 2008, to holders of record on September 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.53125 for each receipt held.
July 18, 2008
Citi Reports Second Quarter Net Loss of $2.2 Billion, Loss Per Share of $0.49, from Continuing Operations
Citigroup Inc. today reported a net loss for the 2008 second quarter of $2.5 billion, or $0.54 per share, based on 5,287 million shares outstanding.(1) Solid results in the core franchise were offset by write-downs and credit costs. Results include $7.2 billion in pre-tax write-downs in Securities and Banking (See Schedule C on page 10). Additionally, credit costs increased $4.5 billion, mainly driven by Consumer Banking in North America and Global Cards.
July 11, 2008
Citi to Sell German Retail Banking Operation to Credit Mutual
Citi announced today that it has entered into a definitive agreement to sell Citibank Privatkunden AG & Co. KGaA, its German retail banking operation, and certain of its affiliates, to Credit Mutuel, the third largest retail banking group in France. Credit Mutuel will pay all-cash consideration of Euro 4.9 billion (US$ 7.7 billion) plus earnings accrued in 2008 through the closing. Citibank, one of Germany's most efficient retail banks, generated post tax earnings in 2007 of Euro 365 million and at year-end 2007 had a net asset value of Euro 944 million, in each case based on German accounting principles. The sale is expected to close in the fourth quarter pending regulatory approvals.
July 03, 2008
Citi Appoints Marty Lippert as Chief Information Officer, and Corporate O&T Chief Operating Officer
Mr. Lippert will play a critical role in driving transformational change across Citi's newly centralized Global Technology and Operations divisions, working closely with Kevin Kessinger, Citi Chief Operations and Technology Officer. In addition, Mr. Lippert will oversee Citi's Corporate Shared Services and Real Estate Operations. He will join the Citi Senior Leadership Committee.
May 30, 2008
NikkoCiti Holdings Announces Organizational Changes
In order to drive Citi's group-wide strategy in Japan more effectively and to further facilitate group-wide management and operations, Nikko Citi Holdings Inc. today announced the following organizational changes:
Noriyuki Ogasawara has been appointed as Chief Administrative Officer to head the Corporate Administration Division.
Naoki Inoue has been appointed as Chief Strategy Officer to head the Strategic Planning Division. He will also assume senior oversight responsibility for Citi's Global Wealth Management businesses in Japan, including Nikko Cordial Securities.
Anthony P. Della Pietra Jr. has been appointed as Chief Investment Officer to oversee a newly established Investments Division. He will assume senior oversight responsibility for Citi's principal investment and alternative investment businesses in Japan.
May 30, 2008
Sim S. Lim Named New CEO of Nikko Citigroup Limited
Nikko Citi Holdings today announced that Sim S. Lim, a long-time Citi executive, will become the new CEO and representative executive officer of Nikko Citigroup Limited, effective June 30, 2008. Mr. Lim will replace Hideo Abe, current CEO & representative executive officer of Nikko Citigroup, who will retire in September after many years of service with the company. Until his retirement, Mr. Abe will remain on the board of directors of Nikko Citigroup as a director.
May 23, 2008
Citigroup Preferred Stock, Series F Dividend Declared
An initial period dividend was declared today on Citigroup's recently issued preferred stock as follows:
8.50% Non-Cumulative Preferred Stock, Series F, payable June 16, 2008, to holders of record on June 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full convertible preferred share, will be paid $.1888888889 for each receipt held.
May 14, 2008
Citi Names Deborah Hopkins Chief Innovation Officer
Citi announced today the appointment of Deborah Hopkins to the new position of Chief Innovation Officer, effective immediately. Since joining Citi in 2002, Ms. Hopkins has held several senior roles at the company, including Chief Operations and Technology Officer and Head of Corporate Strategy, Mergers & Acquisitions. This new role will bring together the strategy, information technology and research and development to drive cross-business, client-focused innovation across the company. Ms. Hopkins will report to Don Callahan, Citi's Chief Administrative Officer.
May 02, 2008
Citi and State Street to Sell CitiStreet for $900 Million
Citigroup Inc. and State Street Corporation today announced that they have entered into a definitive agreement to sell CitiStreet, a benefits servicing business, to ING Group in an all-cash transaction valued at $900 million. CitiStreet is a joint venture formed in 2000, which is owned 50 percent each by Citi and State Street. The acquisition is expected to close, pending customary closing conditions, by the end of the third quarter of this year.
May 01, 2008
Nikko Citi Holdings Inc. Becomes Citi's Principal Holding Company in Japan
Citi today announced that it had successfully completed the previously announced merger of Nikko Cordial Corporation into Citigroup Japan Holdings Ltd., with the surviving entity known as Nikko Citi Holdings Inc. Nikko Citi Holdings, which will continue to be a direct 100%-owned subsidiary of Citigroup Inc., will be Citi's principal holding company in Japan, with responsibility for establishing group-wide strategies, for overseeing and coordinating the activities of Nikko Citi Holdings' direct and indirect operating subsidiaries, and for ensuring a solid foundation of governance, compliance, controls and risk management for the combined group.
April 30, 2008
Citi Prices $4.5 Billion Common Stock Offering
Citi today announced the pricing of its offering of $4.5 billion, or 178,076,770 shares, of common stock. The transaction includes an over-allotment option for up to 17,807,677 additional shares of common stock. The offering was priced at $25.27 per share. The offering is being conducted as a public offering registered under the Securities Act of 1933. On a pro forma basis, after giving effect to Citi's recent issuance of $6 billion of preferred stock and the issuance of $4.5 billion of common stock in this offering, as of March 31, 2008, Citi's Tier One capital ratio would have been approximately 8.6%.
April 29, 2008
Citi Announces $3 Billion Common Stock Offering
Citi today announced it has commenced an offering of approximately $3 billion of common stock. Citi expects the offering to include an over-allotment option to purchase additional shares of common stock. The offering is being conducted as a public offering registered under the Securities Act of 1933.
April 21, 2008
Citigroup Declares Dividends
The Board of Directors of Citigroup today declared a quarterly dividend on the company's common stock of 32 cents per share, payable on May 23, 2008, to stockholders of record on May 5, 2008.
The Board also declared dividends on preferred stock as follows:
6.5% Non-Cumulative Convertible Preferred Stock, Series T, payable May 15, 2008, to holders of record on May 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full convertible preferred share, will be paid $.8125 for each receipt held.
8.125% Non-Cumulative Preferred Stock, Series AA, payable May 15, 2008, to holders of record on May 5, 2008. Holders of depositary receipts, each representing one-thousandth of a full preferred share, will be paid $.5078125 for each receipt held.
April 18, 2008
Citi Reports First Quarter Net Loss of 5.1 Billion, Loss Per Share of $1.02
Citigroup Inc. (NYSE:C) today reported a net loss for the 2008 first quarter of $5.1 billion, or $1.02 per share, based on 5,086 million shares outstanding(1). Results include $6.0 billion in pre-tax write-downs and credit costs on sub-prime related direct exposures. Results also include write-downs of $3.1 billion (net of underwriting fees) on funded and unfunded highly leveraged finance commitments, a downward credit value adjustment of $1.5 billion related to exposure to monoline insurers, write-downs of $1.5 billion on auction rate securities inventory, and a $3.1 billion increase in credit costs in global consumer.
March 31, 2008
Citi Announces New Corporate Organizational Structure and Leadership Team
Citi has established a regional structure to bring decision-making closer to clients. It is empowering the leaders of the geographic regions with the authority to make decisions on the ground. These geographic regions are each led by a single chief executive officer who reports to Mr. Pandit. Asia Pacific, including Japan, will be led by Ajay Banga. Western Europe, Middle East and Africa will be headed by William Mills. The Central and Eastern European region will be led by Shirish Apte. Manuel Medina Mora will continue to lead Mexico and Latin America.
In addition, Citi has reorganized its consumer group into two global businesses – Consumer Banking and Global Cards. The company announced today in a separate press release that Teresa A. "Terri" Dial will join Citi as Global Head of Consumer Strategy and CEO of Consumer Banking in North America. Citi has also consolidated its United States and international credit card businesses into a single global business led by Steven Freiberg, CEO of Global Cards. Institutional Clients Group and Global Wealth Management, which are already organized as global businesses, will continue to be led by John Havens and Sallie Krawcheck, respectively. The four global businesses will allow Citi to deliver on product excellence in close partnership with the regions. The product leaders also will report to Mr. Pandit.
March 26, 2008
Citi Settles Enron Estate Litigation for $1.66 Billion
Citi today announced it has reached settlement agreements resolving the two largest remaining claims against Citi arising out of the collapse of Enron in 2001. Both settlements are fully covered by Citi's existing litigation reserves. Enron will release all of its claims against Citi and certain other parties. Enron will also allow specified Citi-related claims in the bankruptcy proceeding, including all of the bankruptcy claims of parties holding approximately $2.4 billion of Enron credit-linked notes ("CLNs"). Citi reached a separate settlement agreement resolving all disputes with the holders of the CLNs, including a suit against Citi pending in the Federal District Court in Houston.
March 17, 2008
Citi Names Michael Klein Chairman, John Havens Chief Executive Officer of Institutional Clients Group (ICG)
Citi today announced the appointments of Michael Klein as Chairman and John Havens as Chief Executive Officer of the Institutional Clients Group (ICG), effective immediately. ICG is comprised of Citi Markets & Banking (CMB) and Citi Alternative Investments (CAI). Mr. Klein and Mr. Havens will report to Vikram Pandit, Chief Executive Officer of Citi. Mr. Havens has also been appointed Chairman of CAI.
March 11, 2008
Citi Announces New Group Structure in Japan Following Acquisition of 100% of Nikko Cordial Corporation
Citi today announced that it will reorganize its group structure in Japan in order to accelerate Citi's ongoing integration with Nikko and streamline the combined group's operating platform, with the ultimate aim of creating Japan's leading comprehensive banking and securities group.
Citi intends to focus on the following core businesses in Japan going forward:
Retail Businesses – Citi will leverage the combined group's leading franchises in retail securities, retail banking, cards and wealth management in order to offer retail customers a comprehensive set of quality products and services, including brokerage, funds, deposits, foreign exchange, loans and credit cards. In focusing on its retail businesses locally, Citi aims to capture the significant opportunities available in a strong and rapidly growing market segment in Japan.
Institutional Businesses – Citi will leverage the combined group's leading franchises in investment banking and corporate banking, including advisory and M&A, equities, fixed income and global transaction services, in order to expand the combined group's ability to deliver integrated solutions on an exclusive basis for governmental, institutional and corporate clients. Citi aims to leverage Nikko's client relationships and Citi's global products and services to serve clients better and thus to expand its presence in a growing market segment in Japan.
Alternative Investments – Citi will focus on investing capital on behalf of Citi and its investor clients across a wide range of alternative investment asset classes, including private equity, real estate and hedge funds. Citi aims to leverage the principal investments platforms of the combined group in order to capitalize on a rapidly growing market segment in Japan and produce superior investment returns for Citi and its investor clients.
February 27, 2008
Citi Names Brian Leach Chief Risk Officer
Citi today announced that Brian Leach will assume the role of Chief Risk Officer for Citi, reporting to Chief Executive Officer Vikram Pandit. Mr. Leach will also become Acting Chief Risk Officer for the Institutional Clients Group. In addition, the company named four new senior managers to the Risk organization – Suneel Bakhshi, Charles Monet, Greg Hawkins, and Adil Nathani – all reporting to Mr. Leach.
February 04, 2008
Leading Wall Street Banks Establish The Carbon Principles
Three of the world's leading financial institutions today announced the formation of The Carbon Principles, climate change guidelines for advisors and lenders to power companies in the United States. These Principles are the result of a nine-month intensive effort to create an approach to evaluating and addressing carbon risks in the financing of electric power projects.
The Principles are:
Energy efficiency. An effective way to limit CO2 emissions is to not produce them. The signatory financial institutions will encourage clients to invest in cost-effective demand reduction, taking into consideration the value of avoided CO2 emissions. We will also encourage regulatory and legislative changes that increase efficiency in electricity consumption including the removal of barriers to investment in cost-effective demand reduction. The institutions will consider demand reduction caused by increased energy efficiency (or other means) as part of the Enhanced Diligence Process and assess its impact on proposed financings of certain new fossil fuel generation.
Renewable and low carbon distributed energy technologies. Renewable energy and low carbon distributed energy technologies hold considerable promise for meeting the electricity needs of the US while also leveraging American technology and creating jobs. We will encourage clients to invest in cost-effective renewables and distributed technologies, taking into consideration the value of avoided CO2 emissions. We will also encourage legislative and regulatory changes that remove barriers to, and promote such investments (including related investments in infrastructure and equipment needed to support the connection of renewable sources to the system). We will consider production increases from renewable and low carbon generation as part of the Enhanced Diligence process and assess their impact on proposed financings of certain new fossil fuel generation.
Conventional and advanced generation. In addition to cost effective energy efficiency, renewables and low carbon distributed generation, investments in conventional or advanced generating facilities will be needed to supply reliable electric power to the US market. This may include power from natural gas, coal and nuclear technologies. Due to evolving climate policy, investing in CO2-emitting fossil fuel generation entails uncertain financial, regulatory and certain environmental liability risks. It is the purpose of the Enhanced Diligence process to assess and reflect these risks in the financing considerations for certain fossil fuel generation. We will encourage regulatory and legislative changes that facilitate carbon capture and storage (CCS) to further reduce CO2emissions from the electric sector.
