The U.S. Federal Reserve has closed formal notices requiring Citigroup to fix trading risk management weaknesses, a significant step in improving oversight at the third largest U.S. bank. The Fed in late 2023 issued Citi notices to address problems with how the bank calculates and manages trading risks, which have now been terminated.

Officials for Citi and the Fed declined to comment on the matter. The sources declined to be identified because supervisory matters are confidential. This development marks progress in addressing control deficiencies that have affected Citigroup’s operations.

With the termination of the formal notices, Citigroup can focus on enhancing its trading risk management practices to ensure compliance with regulatory requirements. The bank’s efforts to address the issues identified by the Fed are crucial for maintaining a strong and resilient financial system.

Read more at Yahoo Finance: Exclusive-U.S. Fed terminates Citi notices that demanded bank improve risk controls, sources say