Citigroup

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Citigroup Inc. (NYSE: C) or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate Travelers Group on April 7, 1998.[3]
Citigroup Inc. has the world's largest financial services network in the world, spanning 140 countries with approximately 16,000 offices worldwide. The company currently employs approximately 260,000 staff around the world, which is down from 267,150 in 2010 according to Forbes.[4][5] It also holds over 200 million customer accounts in more than 140 countries. It is a primary dealer in US Treasury securities.[6] According to Forbes, at its height Citigroup used to be the largest company and bank in the world by total assets with 357,000 employees until the global financial crisis of 2008.[7] Today it is ranked 24th in terms of assets size compared to HSBC which now ranks as the largest company and bank by assets in the world as of 2011.[8]
Citigroup suffered huge losses during the global financial crisis of 2008 and was rescued in November 2008 in a massive stimulus package by the U.S. government.[9] Its largest shareholders include funds from the Middle East and Singapore.[10] According to the NYTimes, on February 23, 2009, Citigroup announced that the United States government would take a 36% equity stake in the company by converting $25 billion in emergency aid into common shares with a US Treasury credit line of $45 billion to prevent the bankruptcy of the largest bank in the world at the time. The government would also guarantee losses on more than $300 billion troubled assets and inject $20 billion immediately into the company. In exchange, the salary of the CEO is $1 per year and the highest salary of employees is restricted to $500,000 in cash and any amount above $500,000 must be paid with restricted stock that cannot be sold until the emergency government aid is repaid in full. The US government also gains control of half the seats in the Board of Directors, and the senior management is subjected to removal by the US government if there is poor performance. By December 2009, the US government stake was reduced to 27% majority stake from a 36% majority stake after Citigroup sold $21 billion of common shares and equity in the largest single share sale in US history, surpassing Bank of America's $19 billion share sale one month prior. Eventually by December 2010, Citigroup repaid the emergency aid in full and the US government received an additional $12 billion profit in selling its shares.[11][12][13][14][15] US Government restrictions on pay and oversight of the senior management are removed after the US government sold its remaining 27% stake as of December 2010. According to the WSJ, the government aid was provided to prevent a world-wide chaos and panic by the potential collapse of its Global Transactions Services division, which transports more than $3 trillion around the world each day for most of the Fortune 500 companies and over 80 national governments and 60 central banks around the world. According to the article, Mr. Pandit said if Citigroup was allowed to unravel into bankruptcy, "100 governments around the world would be trying to figure out how to pay their employees."[16][17][18][19][20]
Despite huge losses during the global financial crisis, Citigroup Inc. built up a enormous cash pile in the wake of the financial crisis with $247.6 billion in cash as of Q1 2011.[21] This was a result of selling its special assets placed in Citi Holdings, which were guaranteed from losses by the US Treasury while under federal majority ownership. Additionally, according to the Washington Post a special IRS tax exception given to Citi to allow the US Treasury to sell its shares at a profit while it still owned Citigroup shares, which eventually net $12 billion dollars. According to Treasury spokeswoman Nayyera Haq, "This (IRS tax) rule was designed to stop corporate raiders from using loss corporations to evade taxes, and was never intended to address the unprecedented situation where the government owned shares in banks. And it was certainly not written to prevent the government from selling its shares for a profit."[22]
Citigroup is one of the Big Four banks in the United States, along with Bank of America, JP Morgan Chase and Wells Fargo.[23][24][25][26][27][28][29]
Contents [hide]
1 History
1.1 Citicorp
1.2 Travelers Group
1.3 Citicorp and Travelers merger
1.4 Travelers spin off
1.5 Subprime mortgage crisis
1.6 Federal assistance
1.7 Return to profitability, non-governmental shareholder ownership
2 Organization
2.1 Citicorp
2.2 Citi Holdings
3 Divisions
3.1 Global Consumer Group
3.2 Global Wealth Management
3.3 Citi Institutional Clients Group
4 Brands
4.1 Citi
4.2 Citibank
4.3 One Main Financial
4.4 CitiMortgage
4.5 Citi Capital Advisors
4.6 Citi Cards
4.7 Citi Private Bank
4.8 Citi Institutional Clients Group
4.9 Citi Investment Research
4.10 Citi Microfinance
4.11 Banamex
4.12 Woman & Co.
5 Real estate
6 Criticism
6.1 Raul Salinas and alleged money laundering
6.2 Conflicts of interest on investment research
6.3 Plutonomy memo
6.4 Enron, WorldCom and Global Crossing bankruptcies
6.5 Citigroup proprietary government bond trading scandal
6.6 2005 "Revisiting Plutonomy: The Rich Getting Richer" equity strategy public investment advisory
6.7 Regulatory action
6.8 Terra Securities scandal
6.9 Theft from customer accounts
6.10 Federal rescue 2008
6.11 Terra Firma Investments lawsuit
7 Public and government relations
7.1 Political donations
7.2 Lobbying and political advice
7.3 Public and governmental relations
8 Notes
9 References
10 External links
[edit]History

Citigroup was formed on October 9, 1998, following the $140 billion merger of Citicorp and Travelers Group to create the world's largest financial services organization.[3] The history of the company is, thus, divided into the workings of several firms that over time amalgamated into Citicorp, a multinational banking corporation operating in more than 100 countries; or Travelers Group, whose businesses covered credit services, consumer finance, brokerage, and insurance. As such, the company history dates back to the founding of: the City Bank of New York (later Citibank) in 1812; Bank Handlowy in 1870; Smith Barney in 1873, Banamex in 1884; Salomon Brothers in 1910.[30]
[edit]Citicorp
The history begins with the City Bank of New York, which was chartered by New York State on June 16, 1812, with $2 million of capital. Serving a group of New York merchants, the bank opened for business on September 14 of that year, and Samuel Osgood was elected as the first President of the company.[31] The company's name was changed to The National City Bank of New York in 1865 after it joined the new U.S. national banking system, and it became the largest American bank by 1895.[31] It became the first contributor to the Federal Reserve Bank of New York in 1913, and the following year it inaugurated the first overseas branch of a U.S. bank in Buenos Aires, although the bank had, since the mid-nineteenth century, been active in plantation economies, such as the Cuban sugar industry. The 1918 purchase of U.S. overseas bank International Banking Corporation helped it become the first American bank to surpass $1 billion in assets, and it became the largest commercial bank in the world in 1929.[31] As it grew, the bank became a leading innovator in financial services, becoming the first major U.S. bank to offer compound interest on savings (1921); unsecured personal loans (1928); customer checking accounts (1936) and the negotiable certificate of deposit (1961).[31]
The bank changed its name to The First National City Bank of New York in 1955, which was shortened in 1962 to First National City Bank on the 150th anniversary of the company's foundation.[31] The company organically entered the leasing and credit card sectors, and its introduction of US$ certificates of deposit in London marked the first new negotiable instrument in market since 1888. Later to become MasterCard, the bank introduced its First National City Charge Service credit card – popularly known as the "Everything card" – in 1967.[31]
In 1976, under the leadership of CEO Walter B. Wriston, First National City Bank (and its holding company First National City Corporation) was renamed as Citibank, N.A. (and Citicorp, respectively). Shortly afterward, the bank launched the Citicard, which pioneered the use of 24-hour ATMs.[31] As the bank's expansion continued, the Narre Warren-Caroline Springs credit card company was purchased in 1981. John S. Reed was elected CEO in 1984, and Citi became a founding member of the CHAPS clearing house in London. Under his leadership, the next 14 years would see Citibank become the largest bank in the United States, the largest issuer of credit cards and charge cards in the world, and expand its global reach to over 90 countries.[31]
[edit]Travelers Group
Travelers Group, at the time of merger, was a diverse group of financial concerns that had been brought together under CEO Sandy Weill. Its roots came from Commercial Credit, a subsidiary of Control Data Corporation that was taken private by Weill in November 1986 after taking charge of the company earlier that year.[3][32] Two years later, Weill mastered the buyout of Primerica – a conglomerate that had already bought life insurer A L Williams as well as stock broker Smith Barney. The new company took the Primerica name, and employed a "cross-selling" strategy such that each of the entities within the parent company aimed to sell each other's services. Its non-financial businesses were spun-off.[32]


The corporate logo of Travelers Inc. (1993–1998) prior to merger with Citicorp.
In September 1992, Travelers Insurance, which had suffered from poor real estate investments[3] and sustained significant losses in the aftermath of Hurricane Andrew,[33] formed a strategic alliance with Primerica that would lead to its amalgamation into a single company in December 1993. With the acquisition, the group became Travelers Inc. Property & casualty and life & annuities underwriting capabilities were added to the business.[32] Meanwhile, the distinctive Travelers red umbrella logo, which was also acquired in the deal, was applied to all the businesses within the newly named organization. During this period, Travelers acquired Shearson Lehman – a retail brokerage and asset management firm that was headed by Weill until 1985[3] – and merged it with Smith Barney.[32]
[edit]Salomon Brothers
Finally, in November 1997, Travelers Group (which had been renamed again in April 1995 when they merged with Aetna Property and Casualty, Inc.), made the $9 billion deal to purchase Salomon Brothers, a major bond dealer and bulge bracket investment bank.[32] This deal complemented Travelers/Smith Barney well as Salomon was focused on fixed-income and institutional clients whereas Smith Barney was strong in equities and retail. Salomon Brothers absorbed Smith Barney into the new securities unit termed Salomon Smith Barney; a year later, the division incorporated Citicorp's former securities operations as well. The Salomon Smith Barney name was ultimately abandoned in October 2003 after a series of financial scandals that tarnished the bank's reputation.
[edit]Citicorp and Travelers merger
On April 6, 1998, the merger between Citicorp and Travelers Group was announced to the world, creating a $140 billion firm with assets of almost $700 billion.[3] The deal would enable Travelers to market mutual funds and insurance to Citicorp's retail customers while giving the banking divisions access to an expanded client base of investors and insurance buyers.
Although presented as a merger, the deal was actually more like a stock swap, with Travelers Group purchasing the entirety of Citicorp shares for $70 billion, and issuing 2.5 new Citigroup shares for each Citicorp share. Through this mechanism, existing shareholders of each company owned about half of the new firm.[3] While the new company maintained Citicorp's "Citi" brand in its name, it adopted Travelers' distinctive "red umbrella" as the new corporate logo, which was used until 2007.
The chairmen of both parent companies, John Reed and Sandy Weill respectively, were announced as co-chairmen and co-CEOs of the new company, Citigroup, Inc., although the vast difference in management styles between the two immediately presented question marks over the wisdom of such a setup.
The remaining provisions of the Glass–Steagall Act – enacted following the Great Depression – forbade banks to merge with insurance underwriters, and meant Citigroup had between two and five years to divest any prohibited assets. However, Weill stated at the time of the merger that they believed "that over that time the legislation will change...we have had enough discussions to believe this will not be a problem".[3] Indeed, the passing of the Gramm-Leach-Bliley Act in November 1999 vindicated Reed and Weill's views, opening the door to financial services conglomerates offering a mix of commercial banking, investment banking, insurance underwriting and brokerage.[34]
Joe Plumeri headed the integration of the consumer businesses of Travelers Group and Citicorp after the merger, and was appointed CEO of Citibank North America by Weill and Reed.[35][36] He oversaw its network of 450 retail branches.[36][37][38] J. Paul Newsome, an analyst with CIBC Oppenheimer, said: "He's not the spit-and-polish executive many people expected. He's rough on the edges. But Citibank knows the bank as an institution is in trouble-it can't get away anymore with passive selling-and Plumeri has all the passion to throw a glass of cold water on the bank."[39] It was conjectured that he might become a leading contender to run all of Citigroup when Weill and Reed stepped down, if he were to effect a big, noticeable victory at Citibank.[39] In that position, Plumeri boosted the unit's earnings from $108 million to $415 million in one year, an increase of nearly 400%.[40][41][42] He unexpectedly retired from Citibank, however, in January 2000.[43][44]
In 2000, Citigroup acquired Associates First Capital Corporation, which, until 1989, had been owned by Gulf+Western (now part of National Amusements). The Associates was widely criticized for predatory lending practices and Citi eventually settled with the Federal Trade Commission by agreeing to pay $240 million to customers who had been victims of a variety of predatory practices, including "flipping" mortgages, "packing" mortgages with optional credit insurance, and deceptive marketing practices.[45]
[edit]Travelers spin off


The current logo for Travelers Companies
The company spun off its Travelers Property and Casualty insurance underwriting business in 2002. The spin off was prompted by the insurance unit's drag on Citigroup stock price because Traveler's earnings were more seasonal and vulnerable to large disasters, particularly the September 11, 2001 attacks on the World Trade Center in downtown New York City. It was also difficult to sell this kind of insurance directly to customers since most industrial customers are accustomed to purchasing insurance through a broker.
The Travelers Property Casualty Corporation merged with The St. Paul Companies Inc. in 2004 forming The St. Paul Travelers Companies. Citigroup retained the life insurance and annuities underwriting business; however, it sold those businesses to MetLife in 2005. Citigroup still heavily sells all forms of insurance, but it no longer underwrites insurance.
In spite of their divesting Travelers Insurance, Citigroup retained Travelers' signature red umbrella logo as its own until February 2007, when Citigroup agreed to sell the logo back to St. Paul Travelers,[46] which renamed itself Travelers Companies. Citigroup also decided to adopt the corporate brand "Citi" for itself and virtually all its subsidiaries, except Primerica and Banamex.[46]
[edit]Subprime mortgage crisis
Heavy exposure to troubled mortgages in the form of Collateralized debt obligation (CDO's), compounded by poor risk management led Citigroup into trouble as the subprime mortgage crisis worsened in 2008. The company had used elaborate mathematical risk models which looked at mortgages in particular geographical areas, but never included the possibility of a national housing downturn, or the prospect that millions of mortgage holders would default on their mortgages. Indeed, trading head Thomas Maheras was close friends with senior risk officer David Bushnell, which undermined risk oversight.[47][48] As Treasury Secretary, Robert Rubin was said to be influential in lifting the regulations that allowed Travelers and Citicorp to merge in 1998. Then on the board of directors of Citigroup, Rubin and Charles Prince were said to be influential in pushing the company towards MBS and CDOs in the subprime mortgage market.
As the crisis began to unfold, Citigroup announced on April 11, 2007, that it would eliminate 17,000 jobs, or about 5 percent of its workforce, in a broad restructuring designed to cut costs and bolster its long underperforming stock.[49] Even after securities and brokerage firm Bear Stearns ran into serious trouble in summer 2007, Citigroup decided the possibility of trouble with its CDO's was so tiny (less than 1/100 of 1%) that they excluded them from their risk analysis. With the crisis worsening, Citigroup announced on January 7, 2008 that it was considering cutting another 5 percent to 10 percent of its work force, which totaled 327,000.[50]
[edit]Federal assistance
Over the past several decades, the United States government has engineered at least four different rescues of the institution now known as Citigroup.[51] During the most recent tax-payer funded rescue, by November 2008, Citigroup was insolvent, despite its receipt of $25 billion in federal TARP funds, and on November 17, 2008, Citigroup announced plans for about 52,000 new job cuts, on top of 23,000 cuts already made during 2008 in a huge job cull resulting from four quarters of consecutive losses and reports that it was unlikely to be in profit again before 2010. On the same day, Wall Street responded by dropping its stock market value to $6 billion, down from $300 billion two years prior.[52] As a result, Citigroup and Federal regulators negotiated a plan to stabilize the company and forestall a further deterioration in the company's value. The arrangement calls for the government to back about $306 billion in loans and securities and directly invest about $20 billion in the company. The assets remain on Citigroup's balance sheet; the technical term for this arrangement is ring fencing. In a New York Times op-ed, Michael Lewis And David Einhorn described the $306 billion guarantee as "an undisguised gift" without any real crisis motivating it.[53] The plan was approved late in the evening on November 23, 2008.[9] A joint statement by the US Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp announced: "With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy."
Citigroup in late 2008 held $20 billion of mortgage-linked securities, most of which have been marked down to between 21 cents and 41 cents on the dollar, and has billions of dollars of buyout and corporate loans. It faces potential massive losses on auto, mortgage and credit card loans if the economy worsens.[citation needed] [This paragraph requires a reference, particularly to the $20 billion figure quoted above. It is likely that this number is a severe underestimate of the value of CDO holdings held in off-balance sheet SIVs.]
On January 16, 2009, Citigroup announced its intention to reorganize itself into two operating units: Citicorp for its retail and institutional client business, and Citi Holdings for its brokerage and asset management.[54] Citigroup will continue to operate as a single company for the time being, but Citi Holdings managers will be tasked to "tak[e] advantage of value-enhancing disposition and combination opportunities as they emerge",[54] and eventual spin-offs or mergers involving either operating unit have not been ruled out.[55] On February 27, 2009 Citigroup announced that the United States government would be taking a 36% equity stake in the company by converting $25 billion in emergency aid into common shares. Citigroup shares dropped 40% on the news.
On June 1, 2009, it was announced that Citigroup Inc. would be removed from the Dow Jones Industrial Average effective June 8, 2009, due to significant government ownership. Citigroup Inc. was replaced by Travelers Co.[56]
[edit]Return to profitability, non-governmental shareholder ownership
In 2010, Citigroup achieved its first profitable year since 2007. It reported $10.6 billion in net profit, compared with a $1.6 billion loss in 2009.[57] Late in 2010, the government sold its remaining stock holding in the company, yielding an overall net profit to taxpayers of $12 billion.[58]
[edit]Organization

Citi is organized into two major segments – Citicorp and Citi Holdings.[59]
[edit]Citicorp
[edit]Regional Consumer Banking
Retail Banking, Local Commercial Banking and Citi Personal Wealth Management
North America, EMEA, Latin America and Asia; Residential real estate in North America
Citi-Branded Cards
North America, EMEA, Latin America and Asia
Latin America Asset Management
[edit]Institutional Clients Group
Securities and Banking
Investment banking
Debt and equity markets (including prime brokerage)
Lending
Private equity
Hedge funds
Real estate
Structured products
Private Bank
Equity and Fixed Income research
Transaction Services
Cash management
Trade services
Custody and fund services
Clearing services
Agency/trust
[edit]Citi Holdings
[edit]Brokerage and Asset Management
Largely includes investment in and associated earnings from Morgan Stanley Smith Barney joint venture
Retail alternative investments
[edit]Local Consumer Lending
North America
Consumer finance lending: residential and commercial real estate; auto, student and personal loans; and consumer branch lending
Retail partner cards
Certain international consumer lending (including Western Europe retail banking and cards)
[edit]Special Asset Pool
Certain institutional and consumer bank portfolios

IBM

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International Business Machines (IBM) (NYSE: IBM) is an American multinational technology and consulting firm headquartered in Armonk, New York. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.[2]
The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of four companies: the Tabulating Machine Company, the International Time Recording Company, the Computing Scale Corporation, and the Bundy Manufacturing Company.[3][4] CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue.
In 2011, Fortune ranked IBM the 18th largest firm in the U.S.,[5] as well as the 7th most profitable.[6] Globally, the company was ranked the 31st largest firm by Forbes for 2011.[7][8] Other rankings for 2011 include #1 company for leaders (Fortune), #2 best global brand (Interbrand), #1 green company worldwide (Newsweek), #12 most admired company (Fortune), and #18 most innovative company (Fast Company).[9] IBM employs more than 425,000 employees (sometimes referred to as "IBMers") in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.[10]
IBM holds more patents than any other U.S.-based technology company and has nine research laboratories worldwide.[11] Its employees have garnered five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science.[12] Famous inventions by IBM include the automated teller machine (ATM), the floppy disk, the hard disk drive, the magnetic stripe card, the relational database, the Universal Product Code (UPC), the financial swap, SABRE airline reservation system, DRAM, and Watson artificial intelligence.
The company has undergone several organizational changes since its inception, acquiring companies like SPSS (2009) and PwC consulting (2002), spinning off companies like Lexmark (1991), and selling off product lines like ThinkPad to Lenovo (2005).
Contents [hide]
1 History
1.1 1880-1929
1.2 1930-1979
1.3 1980-present
2 Corporate affairs
2.1 Corporate recognition and brand
2.2 Working at IBM
3 Research and inventions
4 Selected current projects
5 Environmental record
6 Company logo and nickname
7 See also
8 References
9 Further reading
10 External links
[edit]History

Main article: History of IBM
[edit]1880-1929

"THINK"

Thomas J. Watson, who led IBM from 1914-1956, discussing the company's motto "THINK"
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Starting in the 1880s, various technologies came into existence that would form part of IBM's predecessor company. Julius E. Pitrap patented the computing scale in 1885;[13] Alexander Dey invented the dial recorder (1888);[14] in 1889, Herman Hollerith patented the Electric Tabulating Machine[15] and Willard Bundy invented a time clock to record a worker's arrival and departure time on a paper tape.[16] On June 16, 1911, these technologies and their respective companies were merged by Charles Ranlett Flint to form the Computing-Tabulating-Recording Company (C-T-R).[17] The New York City-based company had 1,300 employees and offices and plants in Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Michigan; Washington, D.C.; and Toronto, Ontario. It manufactured and sold machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers, along with tabulators and punched cards.
Flint recruited Thomas J. Watson, Sr., from the National Cash Register Company to help lead the company in 1914.[17] Watson implemented "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and an evangelical fervor for instilling company pride and loyalty in every worker".[18] His favorite slogan, "THINK," became a mantra for C-T-R's employees, and within 11 months of joining C-T-R, Watson became its president.[18] The company focused on providing large-scale, custom-built tabulating solutions for businesses, leaving the market for small office products to others. During Watson's first four years, revenues more than doubled to $9 million and the company's operations expanded to Europe, South America, Asia, and Australia.[18] On February 14, 1924, C-T-R was renamed the International Business Machines Corporation (IBM),[9] citing the need to align its name with the "growth and extension of [its] activities".[19]
[edit]1930-1979


NACA researchers using a IBM type 704 electronic data processing machine in 1957
In 1937, IBM's tabulating equipment enabled organizations to process unprecedented amounts of data, its clients including the U.S. Government, during its first effort to maintain the employment records for 26 million people pursuant to the Social Security Act,[20] and the Third Reich[21], largely through the German subsidiary Dehomag. Also in 1937, the company president met with Adolf Hitler, and discussed issues on the supply of equipment, and in 1941 were made ​​leasing supplies to camps to accommodate the prisoners. During the Second World War the company produced small arms (M1 Carbine, and Browning Automatic Rifle).
In 1952, Thomas J. Watson, Jr., became president of the company, ending almost 40 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programmed an IBM 704 to play checkers using a method in which the machine can "learn" from its own experience. It is believed to be the first "self-learning" program, a demonstration of the concept of artificial intelligence. In 1957, IBM developed the FORTRAN (FORmula TRANslation) scientific programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of the board and Albert L. Williams became president of the company. IBM develops the SABRE (Semi-Automatic Business-Related Environment) reservation system for American Airlines. The IBM Selectric typewriter was a highly successful model line of electric typewriters introduced by IBM on July 31, 1961.
In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts, and a year later, the company moved its corporate headquarters from New York City to Armonk, New York. The latter half of that decade saw IBM continue its support of space exploration, with IBM participating in the 1965 Gemini flights, the 1966 Saturn flights, and the 1969 mission to land a man on the moon.
On April 7, 1964 IBM announced the first computer system family, the IBM System/360. Sold between 1964 and 1978, it was the first family of computers designed to cover the complete range of applications, from small to large, both commercial and scientific. For the first time, companies could upgrade their computing capabilities with a new model without rewriting their applications.
In 1973, IBM engineer George J. Laurer developed the Universal Product Code.[22]


IBM's Blue Gene supercomputers were awarded the National Medal of Technology and Innovation by U.S. President Barack Obama on September 18, 2009.
[edit]1980-present
Financial swaps were first introduced to the public in 1981 when IBM and the World Bank entered into a swap agreement.[23] The IBM PC was introduced in 1981, originally designated IBM 5150. The IBM PC became the industry standard. In 1991, IBM sold Lexmark, and in 2002, it acquired PwC consulting. In 2003, IBM initiated a project to rewrite its company values. Using its Jam technology, the company hosted Internet-based online discussions on key business issues with 50,000 employees over 3 days. The discussions were analyzed by sophisticated text analysis software (eClassifier) to mine online comments for themes. As a result of the 2003 Jam, the company values were updated to reflect three modern business, marketplace and employee views: "Dedication to every client's success", "Innovation that matters - for our company and for the world", "Trust and personal responsibility in all relationships".[24] In 2004, another Jam was conducted during which 52,000 employees exchanged best practices for 72 hours. They focused on finding actionable ideas to support implementation of the values previously identified.[25]
In 2005 the company sold its personal computer business to Lenovo, and in 2009, it acquired software company SPSS Inc. Later in 2009, IBM's Blue Gene supercomputing program was awarded the National Medal of Technology and Innovation by U.S. President Barack Obama.
In 2011, IBM gained worldwide attention for its artificial intelligence program Watson, which was exhibited on Jeopardy! where it won against game show champions Ken Jennings and Brad Rutter.
[edit]Corporate affairs

IBM's headquarter complex is located in Armonk, Town of North Castle, New York, United States.[26][27][28] The 283,000-square-foot (26,300 m2) IBM building has three levels of custom curtainwall. The building is located on a 25 acre site.[29] IBM has been headquartered in Armonk since 1964.[citation needed]
The company has nine research labs worldwide—Almaden, Austin, Brazil, China, Haifa, India, Tokyo, Watson (New York), and Zurich—with Watson (dedicated in 1961) serving as headquarters for the research division and the site of its annual meeting. Other campus installations include towers in Montreal, Paris, and Atlanta; software labs in Raleigh-Durham, Rome and Toronto; buildings in Chicago, Johannesburg, and Seattle; and facilities in Hakozaki and Yamato. The company also operates the IBM Scientific Center, the Hursley House, the Canada Head Office Building, IBM Rochester, and the Somers Office Complex. The company's contributions to architecture and design, including Chicago's 330 North Wabash building designed by Ludwig Mies van der Rohe, were recognized with the 1990 Honor Award from the National Building Museum.[30]
IBM's Board of Directors, with 14 members, is responsible for the overall management of the company. With Cathie Black's resignation from the board in November 2010, the remaining 13 members (along with their affiliation and year of joining the board) are as follows: Alain J. P. Belda '08 (Alcoa), William R. Brody '07 (Salk Institute / Johns Hopkins University), Kenneth Chenault '98 (American Express), Michael L. Eskew '05 (UPS), Shirley Ann Jackson '05 (Rensselaer Polytechnic Institute), Andrew N. Liveris '10 (Dow Chemical), W. James McNerney, Jr. '09 (Boeing), James W. Owens '06 (Caterpillar), Samuel J. Palmisano '00 (IBM), Joan Spero '04 (Doris Duke Charitable Foundation), Sidney Taurel '01 (Eli Lilly), and Lorenzo Zambrano '03 (Cemex).[31]
Various IBM facilities

IBM Rochester (Minnesota), nicknamed the "Big Blue Zoo"

IBM Avenida de América Building in Madrid, Spain

Somers (New York) Office Complex, designed by I.M. Pei

IBM Japan Makuhari Technical Center, designed by Yoshio Taniguchi

IBM Haifa Research Lab, Haifa, Israel

IBM Kolkata Building, Kolkata, India
[edit]Corporate recognition and brand
In 2011, Fortune ranked IBM the 18th largest firm in the U.S.,[5] as well as the 7th most profitable.[6] Globally, the company was ranked the 31st largest firm by Forbes for 2011.[32] Other rankings for 2011 include the following:[9]
#1 company for leaders (Fortune)
#2 best global brand (Interbrand)
#1 green company worldwide (Newsweek)[33]
#12 most admired company (Fortune)
#18 most innovative company (Fast Company).
For 2010, IBM's brand was valued at $64.7 billion.[34]
[edit]Working at IBM
In 2010, IBM employed 105,000 workers in the U.S., a drop of 30,000 since 2003, and 75,000 people in India, up from 9,000 seven years previous.[35]
IBM's employee management practices can be traced back to its roots. In 1914, CEO Thomas J. Watson boosted company spirit by creating employee sports teams, hosting family outings, and furnishing a company band. In 1924, the Quarter Century Club, which recognizes employees with 25 years of service, was organized and the first issue of Business Machines, IBM's internal publication, was published. In 1925, the first meeting of the Hundred Percent Club, composed of IBM salesmen who meet their quotas, convened in Atlantic City, New Jersey.
IBM was among the first corporations to provide group life insurance (1934), survivor benefits (1935) and paid vacations (1937). In 1932 IBM created an Education Department to oversee training for employees, which oversaw the completion of the IBM Schoolhouse at Endicott in 1933. In 1935, the employee magazine Think was created. Also that year, IBM held its first training class for women systems service professionals. In 1942, IBM launched a program to train and employ disabled people in Topeka, Kansas. The next year classes begin in New York City, and soon the company was asked to join the President's Committee for Employment of the Handicapped. In 1946, the company hired its first black salesman, 18 years before the Civil Rights Act of 1964. In 1947, IBM announces a Total and Permanent Disability Income Plan for employees. A vested rights pension is added to the IBM retirement plan.
In 1952, Thomas J. Watson, Jr., published the company's first written equal opportunity policy letter, one year before the U.S. Supreme Court decision in Brown vs. Board of Education and 11 years before the Civil Rights Act of 1964. In 1961, IBM's nondiscrimination policy was expanded to include sex, national origin, and age. The following year, IBM hosted its first Invention Award Dinner honoring 34 outstanding IBM inventors; and in 1963, the company named the first eight IBM Fellows in a new Fellowship Program that recognizes senior IBM scientists, engineers and other professionals for outstanding technical achievements.


An IBM delivery tricycle in Johannesburg, South Africa in 1965
On September 21, 1953, Thomas Watson, Jr., the company's president at the time, sent out a controversial letter to all IBM employees stating that IBM needed to hire the best people, regardless of their race, ethnic origin, or gender. He also publicized the policy so that in his negotiations to build new manufacturing plants with the governors of two states in the U.S. South, he could be clear that IBM would not build "separate-but-equal" workplaces.[36] In 1984, IBM added sexual orientation to its nondiscrimination policy. The company stated that this would give IBM a competitive advantage because IBM would then be able to hire talented people its competitors would turn down.[37]
IBM was the only technology company ranked in Working Mother magazine's Top 10 for 2004, and one of two technology companies in 2005.[38][39] On October 10, 2005, IBM became the first major company in the world to commit formally to not using genetic information in employment decisions. The announcement was made shortly after IBM began working with the National Geographic Society on its Genographic Project.
IBM provides same-sex partners of its employees with health benefits and provides an anti-discrimination clause. The Human Rights Campaign has consistently rated IBM 100% on its index of gay-friendliness since 2003 (in 2002, the year it began compiling its report on major companies, IBM scored 86%).[40] In 2007 and again in 2010, IBM UK was ranked first in Stonewall's annual Workplace Equality Index for UK employers.[41]
The company has traditionally resisted labor union organizing,[42] although unions represent some IBM workers outside the United States. In 2009, the Unite union stated that several hundred employees joined following the announcement in the UK of pension cuts that left many employees facing a shortfall in projected pensions.[43]
A dark (or gray) suit, white shirt, and a "sincere" tie[44] was the public uniform for IBM employees for most of the 20th century. During IBM's management transformation in the 1990s, CEO Louis V. Gerstner, Jr. relaxed these codes, normalizing the dress and behavior of IBM employees to resemble their counterparts in other large technology companies. Since then IBM's dress code is business casual although employees often wear formal clothes during client meetings.[citation needed]
On 16 June 2011, the company announced a grants programs, called IBM100, to fund its employees participation in volunteer projects - the year long initiative is part of the company's centenary celebrations.[45]
[edit]Research and inventions



An anechoic chamber inside IBM's Yamato research facility
In 1945, The Watson Scientific Computing Laboratory was founded at Columbia University in New York, New York. The renovated fraternity house on Manhattan's West Side was used as IBM's first laboratory devoted to pure science. The lab was the forerunner of IBM's Research Division, which today operates research facilities around the world.
In 1966, IBM researcher Robert H. Dennard invented Dynamic Random Access Memory (DRAM) cells, one-transistor memory cells that store each single bit of information as an electrical charge in an electronic circuit. The technology permits major increases in memory density, and is widely adopted throughout the industry where it remains in widespread use today.
IBM has been a leading proponent of the Open Source Initiative, and began supporting Linux in 1998.[46] The company invests billions of dollars in services and software based on Linux through the IBM Linux Technology Center, which includes over 300 Linux kernel developers.[47] IBM has also released code under different open source licenses, such as the platform-independent software framework Eclipse (worth approximately US$40 million at the time of the donation),[48] the three-sentence International Components for Unicode (ICU) license, and the Java-based relational database management system (RDBMS) Apache Derby. IBM's open source involvement has not been trouble-free, however (see SCO v. IBM

Chevron Corporation

Image by elycefeliz via Flickr
Chevron Corporation (NYSE: CVX) is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's six "supermajor" oil companies. For the past five years, Chevron has been continuously ranked as one of America's 5 largest corporations by Fortune 500.[3] In 2011 it was named the 16th largest public company in the world by Forbes Global 2000.[4][5]
Contents [hide]
1 History
2 Overview
3 Alternative energy
3.1 Electric Vehicles
3.2 Biofuels
3.3 Solar Power
4 Controversies
4.1 Great American streetcar scandal
4.2 Tax evasion
4.3 Blocking of NiMH battery technology for automobiles
4.4 Environmental damage in Ecuador
4.5 Pollution in Richmond, California
4.6 Oil spills in Angola
4.7 Violation of the Clean Air Act in the USA
4.8 Niger Delta shootings
4.9 Destruction of natural forest in Bangladesh
4.10 Investment in Iran
5 New policy and development
6 Board of directors
7 Marketing brands
7.1 Fuel
7.2 Convenience stores
7.3 Lubricants
7.4 Fuel additives
8 See also
9 References
10 External links
[edit]History

Chevron Corporation was originally known as Standard Oil Co. (California) and was formed amid the antitrust breakup of John D. Rockefeller's Standard Oil company in 1911. It was one of the "Seven Sisters" that dominated the world oil industry in the early 20th century. In 1926, the company was renamed Standard Oil Co. of California or Socal.[6][7] In 1933, Saudi Arabia granted SoCal a concession to find oil, and oil was found in 1938. In 1948, SoCal discovered the world's largest oil field (Ghawar) in Saudi Arabia.[8] SoCal's subsidiary, California-Arabian Standard Oil Company, developed over years, to become the Arabian American Oil Company (ARAMCO) in 1944. In 1973, the Saudi government began buying into ARAMCO. By 1980, the company was entirely owned by the Saudis, and in 1988, the name was changed to Saudi Arabian Oil Company (Saudi Aramco).
Standard Oil of California and Gulf Oil merged in 1984, the largest merger in history at that time. Under the antitrust regulation, SoCal divested many of Gulf's operating subsidiaries, and sold some Gulf stations and a refinery in the eastern United States. SoCal changed the name to Chevron Corporation.[1]
In January 1996, NGC (formerly NYSE: NGL) and Chevron announced plans to merge Chevron’s natural gas and natural gas liquids business with NGC. On May 23, 1996, the companies reached an agreement in principle to merge their business. Under the agreement, Chevron transferred its natural gas gathering, operating and marketing operation to NGC in exchange for a roughly 25 percent equity stake in NGC. On August 30, shareholders approved the deal creating North America’s largest natural gas and gas liquids wholesaler. In 1998, NGC Corporation was renamed Dynegy (NYSE: DYN).[9][10]
In a merger completed February 1, 2000, Illinova Corp. (formerly NYSE: ILN) became a wholly owned subsidiary of Dynegy Inc., in which Chevron also took a 28% stake.[11] However, Chevron in May 2007 sold its roughly 12 percent (at the time) Class A common stock in the company for approximately $985 million, resulting in a gain of $680 million.[12][13]
On October 15, 2000 Chevron announced it would acquire Texaco (NYSE: TX) creating the second largest oil company in the United States and the world’s fourth-largest publicly traded oil company with a combined market value of approximately $95 billion. On October 9, 2001, the shareholders of Chevron and Texaco voted to approve the merger creating ChevronTexaco. The deal was valued at $45 billion.[14][15][16]
On May 9, 2005, ChevronTexaco announced it would drop the Texaco moniker and return to the Chevron name. Texaco remains as a brand under the Chevron Corporation.
On April 4, 2005, Chevron announced it planned to purchase Unocal Corporation (NYSE: UCL) for $18.4 billion increasing the company’s petroleum and natural gas reserves by about 15 percent. On August 10, 2005, Unocal Corporation shareholders approved Chevron’s acquisition of the company. The deal was valued at $18 billion.[17][18] Because of Unocal's large South East Asian geothermal operations, Chevron became the world's largest producer of geothermal energy.[19]
In July 2010, Chevron ended retail operations in the Mid Atlantic US, removing the Chevron and Texaco names from 1,100 stations in Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, Washington, D.C., and parts of Tennessee.[20]
On November 9, 2010, Chevron announced it would acquire Pennsylvania based Atlas Energy Inc. (NASDAQ: ATLS) for $3.2 billion in cash and an additional $1.1 billion in existing debt owed by Atlas. On February 18, 2011, the shareholders of Atlas energy voted to approve the merger. The deal was valued at $4.3 billion.[21][22]
[edit]Overview

Chevron employs approximately 62,000 people worldwide (of which approximately 30,000 are employed in U.S. operations). As of December 31, 2010, Chevron had 10.545 billion barrels of oil-equivalent net proved reserves. Daily production in 2010 was 2.763 million net oil-equivalent barrels per day. The company has a worldwide marketing network in 84 countries with approximately 19,550 retail sites, including those of affiliate companies. The company also has interests in 13 power generating assets in the United States and Asia. Chevron also has gas stations in Western Canada[23] and operates the Burnaby Refinery.
Chevron was headquartered in San Francisco for nearly a century before it relocated across the bay to San Ramon, CA. The headquarters at 555 and 575 Market Street, built in the mid-1960s, in San Francisco were sold in December 1999.[24] Its original headquarters were at 225 Bush St., built in 1912.[25] Now, their headquarters are at 6001 Bollinger Canyon Road, San Ramon, CA.
Chevron is the owner of the Standard Oil trademark in 16 states in the western and southeastern U.S. To maintain ownership of the mark, the company owns and operates one Standard-branded Chevron station in each state of the area.[26] Additionally, Chevron owns the trademark rights to Texaco and CalTex fuel and lubricant products.[27] [28]
Several automakers, including General Motors and Toyota, use gasoline often from Chevron when they test vehicles. Ford uses Chevron gas also in North America, despite its strategic alliance with BP. Chevron also has often had one of the highest brand loyalty for gasoline in America, with only Shell and BP (through Amoco) having equally high loyalty.[citation needed]
Chevron Shipping Company is a wholly owned subsidiary company which provides the maritime transport operations, marine consulting services and marine risk management services for Chevron Corporation. The CSC operated fleet comprises crude oil and product tankers, crude lightering ships and liquefied natural gas (LNG) carriers. The fleet is divided into two sections: The US fleet consists of four product tankers which transport oil product between Chevron refineries and oil products from Chevron refineries to US supply terminals. The ships are manned by US citizens and are flagged in the US. The International fleet vessels are primarily flagged in the Bahamas and have officers and crews from many different nations.[29] The largest ships are 320,000 tonne Very Large Crude Carriers VLCCs which carry two million barrels of crude oil. The job of the international fleet is to transport crude oil from the oilfields to the refineries. The international fleet mans one LNG tanker.[30]
Chevron ships historically had names beginning with "Chevron", such as the Chevron Washington and Chevron South America, or were named after former or serving directors of the company. Samuel Ginn, William E Crain, Kenneth Derr, Richard Matzke and most notably Condoleezza Rice were amongst those honored, but the ship named after Rice was subsequently renamed as Altair Voyager.[31] All the ships were renamed in 2001 following the corporate merger with Texaco. Ships in the international fleet are all named after celestial bodies or constellations, such as Orion Voyager and Altair Voyager and Capricorn Voyager. The US flagged ships are named after the states in the country, as in Washington Voyager and Colorado Voyager, Mississippi Voyager, Oregon Voyager and the California Voyager.[32] [33]
Chevron is a signatory participant of the Voluntary Principles on Security and Human Rights.[34]
[edit]Alternative energy

The company is developing technology for alternative energy, including fuel cells, photovoltaics, advanced batteries, and hydrogen fuel for transport and power.
[edit]Electric Vehicles
Chevron may be squelching all access to large NiMH batteries through its control of patent licenses in order to remove a competitor to gasoline.[35] This culminated in a lawsuit against Panasonic and Toyota over production of the EV-95 battery used in the RAV4 EV[citation needed].
However, with the Lithium-ion battery, it appears there will be plenty of gas and electricity for all interested parties for the foreseeable future. Chevron owns Ovonics, the leading producer of Lithium Ion Batteries. Ovonics was purchased by Chevron-Texaco in 2001, reportedly so Chevron-Texaco could expand their business into the emerging hybrid market. But, some in the alternative energy field see an ulterior motive, so Chevron-Texaco can suppress the development of Lithium Ion Batteries. They feel this way because Ovonics has shown little interest in selling Lithium Ion Batteries to electric vehicle enthusiasts since purchasing the company.[36] Nevertheless, Ovonics does continue to work with commercial manufacturers.
[edit]Biofuels
Chevron is investing $300M USD a year into alternative fuel sources, and has created a biofuels business unit.[37][38]
Chevron and US-DOE's National Renewable Energy Laboratory (NREL) announced that they had entered into a collaborative agreement to produce biofuels from algae. Chevron and NREL scientists would develop algae strains that can be economically harvested and processed into transportation fuels, such as jet fuel.[39]
[edit]Solar Power
Chevron has invested in Solar Power such as the 500 kW Solarmine photovoltaic solar project in Fellows, California, as well as the 1000 kW concentrated photovoltaic solar field in Questa, New Mexico.[40]
[edit]Controversies

[edit]Great American streetcar scandal
In 1950 three companies, General Motors, Firestone and Chevron, then known as "Standard Oil", were charged and convicted of criminal conspiracy for their part in the Great American streetcar scandal. The scandal involved purchasing streetcar systems throughout the United States and dismantling and replacing them with buses,[41] in order to increase their sales of petroleum, automobiles and tires.
[edit]Tax evasion
Chevron was found to have evaded $3.25 billion in federal and state taxes from 1970 to 2000 through a complex petroleum pricing scheme involving a project in Indonesia.[42] [43] Chevron and Texaco, before they merged in 2001, each owned 50 percent of a joint venture called Caltex, which pulled crude oil from the ground in a project with the Indonesian state oil company, Pertamina. Chevron was accused of reducing its tax liabilities in the U.S. by buying oil from Caltex at inflated prices. One internal Chevron document set the price it paid Pertamina for oil at $4.55 a barrel higher than the prevailing market price. Chevron was then able to overstate deductions for costs on its U.S. income tax returns. Indonesia appeared to levy tax on this oil at 56%, a rate far higher than the corporate tax rate in the U.S. Because the United States gives companies a credit for taxes paid to foreign governments, tax paid to the Indonesian government reduces tax to the U.S. government.
Caltex transferred fund out of the U.S. to Indonesia, because the Indonesian government compensated Caltex for the excessively priced oil and the extra taxes paid by giving oil for free. Because Caltex had to pay taxes on that oil, too, the Indonesian government gave it even more oil to cover the taxes.
[edit]Blocking of NiMH battery technology for automobiles
Main article: Patent encumbrance of large automotive NiMH batteries
ECD Ovonics founder, Stan Ovshinksy, and Dr. Masahiko Oshitani of the Yuasa Company, invented the NiMH technology used in hybrid vehicles .[44][45] In 1994, General Motors acquired a controlling interest in Ovonics's battery development and manufacturing business. On October 10, 2001, Texaco purchased GM's share in GM Ovonics, and Chevron completed acquisition of Texaco six days later. In 2003, Texaco Ovonics Battery Systems was restructured into Cobasys, a 50/50 joint venture between Chevron and Energy Conversion Devices (ECD) Ovonics.[46] Chevron's influence over Cobasys extends beyond a strict 50/50 joint venture. Chevron holds a 19.99% interest in ECD Ovonics.[47] In addition, Chevron maintains the right to seize all of Cobasys' intellectual property rights in the event that ECD Ovonics does not fulfill its contractual obligations.[48] On September 10, 2007, Chevron filed a legal claim that ECD Ovonics has not fulfilled its obligations. ECD Ovonics disputes this claim.[49] Since that time, the arbitration hearing was repeatedly suspended while the parties negotiate with an unknown prospective buyer. No agreement has been reached with the potential buyer.[50] Cobasys's patents relating to NiMH batteries expire in 2015.


Sometimes gas stations have restaurants in them, such as this one in Chilliwack, British Columbia, which has a White Spot inside it.
In her book, Plug-in Hybrids: The Cars that Will Recharge America, published in February 2007, Sherry Boschert argues that large-format NiMH batteries are commercially viable but that Cobasys refuses to sell the batteries or license the technology to small companies or individuals. Boschert argues that Cobasys accepts only very large orders for the batteries. Major automakers showed little interest in placing large orders for large-format NiMH batteries. However, Toyota complained about the difficulty in getting smaller orders of large format NiMH batteries to service the existing 825 RAV-4EVs. Because no other companies were willing to place large orders, Cobasys was not manufacturing or licensing large format NiMH battery technology for automobiles. Boschert concludes that "it's possible that Cobasys (Chevron) is squelching all access to large NiMH batteries through its control of patent licenses in order to remove a competitor to gasoline. Or it's possible that Cobasys simply wants the market for itself and is waiting for a major automaker to start producing plug-in hybrids or electric vehicles."[35]
In an interview with Economist, Ovshinsky subscribed to the former view. "I think we at ECD we made a mistake of having a joint venture with an oil company, frankly speaking. And I think it’s not a good idea to go into business with somebody whose strategies would put you out of business, rather than building the business."[51]
In December 2006, Cobasys and General Motors announced that they had signed a contract under which Cobasys provides NiMH batteries for the Saturn Aura hybrid sedan.[52] In March 2007, GM announced that it would use Cobasys NiMH batteries in the 2008 Chevrolet Malibu hybrid as well.
In October 2007, International Acquisitions Services and Innovative Transportation Systems filed suit against Cobasys and its parents for refusing to fill an order for large-format NiMH batteries to be used in the electric Innovan.[50]
In August 2008, Mercedes-Benz U.S. International filed suit against Cobasys, on the ground Cobasys did not tender the batteries it agreed to build for Mercedes-Benz’s planned hybrid SUV.[53]
[edit]Environmental damage in Ecuador

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From 1972 to 1993, Texaco operated development of the Lago Agrio oil field in Ecuador. Ecuadorian farmers and indigenous residents accused Texaco (now Chevron), of making residents ill and damaging forests and rivers by discharging 18 billion gallons of formation water into the rainforest, without any remediation. They sued Chevron for extensive environmental damage caused by these operations, which have sickened thousands of Ecuadorians and polluted the Amazon rainforest. The Ecuadorian court could have imposed a legal penalty of up to $28 billion in a class action lawsuit filed on behalf of Amazonian villagers in the region. Chevron claimed that agreements with the Ecuadorian Government exempted the company from any liabilities.[54][55][56] A documentary on the issue, Crude, premiered in September 2009.
From 1977 until 1992 Texaco (Texpet), a subsidiary of Texaco Inc., was a minority member of this consortium with Petroecuador, the Ecuadorian state-owned oil company, as the majority partner. Since 1990, the operations have been conducted solely by Petroecuador. At the conclusion of the consortium and following an independent third-party environmental audit of the area, Texaco formally agreed with the Republic of Ecuador and Petroecuador to conduct a three year remediation program at a cost of $40 million. The government subsequently granted Texpet and all related corporate entities a full release from any and all environmental liability arising from its operations.[54] Based on the history above, Chevron believes that "this lawsuit lacks legal or factual merit." However, water and soil samples taken by an Ecuadorean scientific team after Texaco departed in 1998 found almost half still contained unsafe levels of petroleum hydrocarbons.[57]
On 15 February 2011, a court in Ecuador fined Chevron $8.6 billion over pollution to the country's Amazon region by Texaco between 1972 and 1992, with campaigners claiming loss of crops and farm animals as well as increased local cancer rates.[57][58][59] The action was brought against Chevron by 30,000 Ecuadorean people, and is the first time that indigenous people have successfully sued a multinational corporation in the country where the pollution took place.[57][58] The trial had begun in 2003.[60] The total penalty imposed on Chevron is $9.5 billion as it was ruled that the oil company must pay an additional 10 per cent legally mandated reparations fee.[58] $27 billion was the sum total requested by plaintiffs, $18.4 billion more than was eventually granted by the court.[59] The Ecuadoreans expressed happiness that Chevron was declared guilty, though also expressed dismay that the award of $8.6 billion would not be enough to make up for the damage caused by the oil company.[61] However, environmental activists wish this case to serve as a precedent against pollution causing business being carried out by firms in developing countries.[58] Nonprofit organization Amazon Watch described the outcome of the case as "unprecedented".[61] Chevron described the lawsuit as an "extortion scheme" and refused to pay the fine.[57] Chevron has no international obligation to pay, and no assets in Ecuador for the government to seize.
[edit]Pollution in Richmond, California
Chevron’s activities at its century-old Richmond refinery have been the subject of ongoing controversy. The project generated over 11 million pounds of toxic materials and caused more than 304 accidents.[62] The Richmond refinery paid $540,000 in 1998 for illegally bypassing waste water treatments and failing to notify the public about toxic releases.[63] Overall, Chevron is listed as potentially liable for 95 Superfund sites, with funds set aside by the EPA for clean-up.[64] In October 2003, the state of New Hampshire sued Chevron and other oil companies for using MTBE, a gasoline additive that the attorney general claimed polluted much of the state's water supply.[65] The pollution created by the refinery has also had adverse health effects on the residents of Richmond, including relatively high rates of respiratory diseases and cancer when compared to the state and national averages, and the health issues related to emergency spills.[66]
[edit]Oil spills in Angola
Chevron's operations in Africa have also been criticized as environmentally unsound.[67] In 2002, Angola became the first country in Africa ever to levy a fine on a major multinational corporation operating within its borders, when it demanded $2 million in compensation for oil spills allegedly caused by Chevron.[68]
[edit]Violation of the Clean Air Act in the USA
On October 16, 2003, Chevron U.S.A. settled a charge under the Clean Air Act, which reduced harmful air emissions by about 10,000 tons a year.[69] In San Francisco, Chevron was filed by a consent decree to spend almost $275 million to install and utilize innovative technology to reduce nitrogen and sulfur dioxide emissions at its refineries.[70] After violating the Clean Air Act at an offline loading terminal in El Segundo, California, Chevron paid a $6 million penalty as well as $1 million for environmental improvement projects.[71] Chevron also had implemented programs that minimized production of hazardous gases, upgraded leak detection and repair procedure, reduced emissions from sulfur recovery plants, and adopted strategies to ensure the proper handling of harmful benzene wastes at refineries.[69] Chevron also spent about $500,000 to install leakless valves and double-sealed pumps at its El Segundo refinery, which could prevent significant emissions of air contaminants.[71]
Defenders of Chevron's environmental record point to recent changes in the corporation, particularly its pledge in 2004 to combat global warming.[72]
[edit]Niger Delta shootings
On May 25, 1998, over 100 activists staged a demonstration and occupied a barge servicing a company oil platform in the Niger Delta, Nigeria.[73] After demanding a meeting with the managing director of the company to express their grievances, they were eventually met by a Nigerian employee whose job was to liaise with the local communities. After speaking to the elders of the community on shore, the representative then informed the activists that Chevron would offer more jobs to local people on the project but as to their other demands he would have to get back to them in a few days.[73] Four days later, on May 28, 1998, activists saw Chevron helicopters flying in and, in the words of one activist, "We were looking at all these helicopters thinking that probably people inside these helicopters might have been Chevron reps who are actually coming to dialogue with us here."
In fact, the helicopters contained members of the Nigerian navy and police, who immediately began teargassing and shooting at the activists and subsequently two activists, Jola Ogungbeje and Aroleka Irowaninu, died from their wounds.[73] Chevron describes the situation as "a violent occupation of private property by aggressors seeking to extort cash payments from the company."[74] The Nigerian government is reportedly 80% dependent upon oil production and is condemned by many for its reported treatment of environmentalists.[75] The documentary "Drilling and Killing" covers these and other topics.
U.S. District Judge Susan Illston, in allowing a lawsuit brought by victims and their families against Chevron to proceed, said that there was evidence that Chevron had hired and provided transportation to Nigerian military forces known for their "general history of committing abuses."[76] In March 2008, the plaintiffs' lawyers, without explanation, "quietly moved to withdraw half of their claims" against Chevron.[77]
On December 1, 2008, a federal jury cleared Chevron of all charges brought against them in the case. The jury deliberated for almost two days. Chevron had claimed that the military intervention was necessary to protect the lives of its workers and considers the jury's decision vindication for the accusations of wrongdoing.[78]
[edit]Destruction of natural forest in Bangladesh
On 26 June 2008, a fire in Lawachhara (a natural forest; known to be highly rare of its kind in the region) had broken out as Chevron Corp. carried out a 3D seismic survey that was to be six-months long. The company had violated the conditions of government’s environment clearance certificate by not informing the ministry about the cracks that had previously occurred in nearby residents' properties due to explosions caused by the activities.[79]
[edit]Investment in Iran
One of the U.S. Embassy cables published by WikiLeaks, concerns a conversation which took place on March 19th, 2009, between the Iraqi Prime Minister, Nouri al-Maliki, and the U.S. chargé d'affaires.[80] One of the subjects discussed was the negotiation between the Iraqi Prime Minister and Chevron concerning a cross-border oilfield (Iran-Iraq), despite strict U.S. sanctions which state "US persons may not perform services, including financing services, or supply goods or technology that would benefit the Iranian oil industry." Chevron asserted that they had not engaged in any negotiations that would violate U.S. law.[81] This document was intended to have been kept secret until 2029.[80]
[edit]New policy and development



Chevron's 500kW Solarmine photovoltaic solar project in Fellows, California
Chevron has taken steps to reduce emissions of greenhouse gases and pursue cleaner forms of energy.[82] It has scored highest among U.S. oil companies for investing in alternative energy sources and setting targets for reducing its own emissions[82] and is the world's largest producer of geothermal energy, providing enough power for over 7 million homes.[83]
Chevron is currently considering an floating liquefied natural gas facility to develop offshore discoveries in the Exmouth Plateau of Western Australia.[8