Regulators fine Citigroup $136 million in setback for CEO Jane Fraser
How did the FDIC and the Fed rate Citigroup's 2023 plan shortcomings?
The FDIC identified Citigroup's 2023 plan shortcomings as a more serious "deficiency," while the Fed rated it as a less severe "shortcoming." The agencies disagreed on the severity of the weaknesses found in Citigroup's resolution plan, which led to the plan being deemed to have a shortcoming.
What revenue and expense targets has Citigroup set for 2026?
Citigroup aims to grow its full-year revenue by at least $6 billion and lower its expenses by at least $500 million by 2026. The bank plans to achieve this through a transformation focused on serving multinational corporations and shedding non-profitable operations.
What issues were found in Citigroup's 2023 "living wills"?
Regulators found weaknesses in Citigroup's 2023 "living wills," which detail how the bank would wind itself down if a catastrophic event occurred. The issues were related to data integrity and data management, leading to inaccurate calculations of the liquidity and capital needed to unwind derivatives positions. The FDIC deemed the weakness severe enough to be a "deficiency," while the Fed considered it a "shortcoming."