Citigroup fined $136mn for compliance failures in further blow to overhaul

00:00

{"text":[[{"start":11.36,"text":"Citigroup will pay $135.6mn to US banking regulators for failing to correct long-standing problems in risk control and data management, the latest black eye for it and chief executive Jane Fraser, whose tenure has been plagued by regulatory issues. "}],[{"start":29.84,"text":"Michael Hsu, acting Comptroller of the Currency, said in a statement on Wednesday that Citi had “long-standing deficiencies” that had not been fully addressed by the bank and its management. "},{"start":41.307,"text":"He added that Citi needed to “refocus its efforts” and ensure “appropriate resources are allocated for this purpose”. "}],[{"start":49.19,"text":"The Federal Reserve, which is assessing part of the fine, said a 2023 inspection of Citi found that its data control issues remained a risk. "}],[{"start":59.54,"text":"Fraser on Wednesday said in a statement that Citi had made “good progress” but acknowledged, as she had at a recent investor event, that regulatory issues were one of the areas that the bank had not moved quickly enough to resolve during her tenure. "}],[{"start":74.76,"text":"Last month, another US regulator, the Federal Deposit Insurance Corporation, voted to reject Citi’s so-called living will, finding its plan to wind itself down in a theoretical calamity and avoid a government bailout to be “deficient”. "}],[{"start":90.92,"text":"In May, UK regulators fined Citi £62mn for failing to prevent a $1.4bn trading error, which occurred in 2022 and briefly convulsed European stock markets, a year after Fraser became Citi’s top executive. "}],[{"start":108.61,"text":"A number of top executives in charge of data and technology have recently exited the bank, including Mike Whitaker, who was the head of Citi’s technology and operations. "},{"start":119.452,"text":"Whitaker was replaced in May by Tim Ryan, who had previously been the US head of accounting and consulting firm PwC. "}],[{"start":128.44,"text":"“We’ve intensified our focus and increased our investment in those areas over the last several months,” Fraser said. "},{"start":135.732,"text":"“We’ve always said that progress wouldn’t be linear, and we have no doubt that we will be successful in getting our firm where it needs to be. ”"}],[{"start":144.34,"text":"Citi’s documented data issues go back to 2020, when it mistakenly sent $900mn to creditors of its client Revlon. "},{"start":153.632,"text":"Within months, Citi was fined $400mn by regulators for having inadequate risk and data controls, which it was ordered to fix. "},{"start":162.799,"text":"Citi’s then chief executive Mike Corbat announced in September of that year that he was stepping down. "},{"start":168.842,"text":"Fraser took over in March 2021, and called fixing Citi’s regulatory woes her “top priority”. "}],[{"start":176.32,"text":"Fraser quickly hired Rob Casper, a former top technology executive at rival JPMorgan, to lead Citi’s data transformation effort. "},{"start":185.962,"text":"He left the bank in May 2023. "}],[{"start":189.76,"text":"His replacement Kathleen Martin, who also came from JPMorgan, recently sued the bank. "},{"start":196.364,"text":"In the suit, she alleged she was repeatedly instructed to lie to regulators about Citi’s progress on its risk and data mitigation efforts. "},{"start":205.394,"text":"Martin claims she was fired last autumn for reporting to regulators that Citi had missed a crucial deadline connected to the 2020 fine. "}],[{"start":214.78,"text":"Citi is fighting the suit, and has said Martin was fired for legitimate reasons. "}],[{"start":null,"text":"<ft-content type=\"http://www.ft.com/ontology/content/Video\" url=\"http://api.ft.com/content/db2e862f-b0d3-4840-a51f-8160aa4982b2\" data-embedded=\"true\"></ft-content>"}],[{"start":219.81,"text":""}]],"url":"https://creatives.ftacademy.cn/album/162676-1720690607.mp3"}

您已阅读100%（3882字），剩余0%（0字）包含更多重要信息，订阅以继续探索完整内容，并享受更多专属服务。

Citigroup fined $136mn for compliance failures in further blow to overhaul

FT商学院

您可能感兴趣的文章