⁍ The Fed said the action ‘requires the firm to correct several longstanding deficiencies’
In a statement, Citi said it was disappointed to have fallen short of regulatory expectations.
⁍ The hefty penalty follows renewed public and regulatory scrutiny of Citi’s operations.
– Citigroup has agreed to pay a $400 million penalty after US regulators found “several longstanding deficiencies” in its risk management, data governance, and internal controls, Reuters reports. According to the Federal Reserve and Office of the Comptroller of the Currency, Citi “has failed to implement and maintain an enterprisewide risk management and compliance risk management program, internal controls, or a data governance program commensurate with the Bank’s size, complexity, and risk profile.” The order also gives the OCC the right to veto any new Citi acquisitions and changes to senior management or the bank’s board. Citi says it is “disappointed” with the order and has “significant remediation projects” under way.
Source: https://www.reuters.com/article/usa-citigroup-enforcement/update-2-citigroup-fined-400-mln-by-regulators-agrees-to-fix-longstanding-deficiencies-idUSL1N2GY21A