Citigroup has now been fined more than half a billion dollars after CEO Jane Fraser staked her tenure on fixing the bank
What was the total fine imposed on Citigroup recently?
Citigroup was recently fined a total of £62 million ($79 million) by UK regulators for failures in its trading systems that almost resulted in stocks worth $189 billion being dumped onto European markets. The Financial Conduct Authority (FCA) imposed a fine of nearly £28 million ($36 million), while the Bank of England’s Prudential Regulation Authority fined the bank almost £34 million ($43 million).
Why did Citigroup receive these fines from regulators?
Citigroup received fines from regulators due to insufficient progress in resolving longstanding internal control and risk issues, despite previous fines and commitments to address the problems. The bank failed to meet obligations from a 2020 consent order related to these issues, prompting additional penalties.
What specific improvements must Citigroup address according to Michael J. Hsu?
Michael J. Hsu, Acting Comptroller of the Currency, expects Citigroup to fully address its longstanding deficiencies in a timely manner, particularly regarding internal control and risk issues2. He highlights the need for the bank to see through its transformation and meet its obligations stemming from the 2020 consent order.