From Investing.com: 2024-07-10 19:11:34

U.S. bank regulators have fined Citigroup $136 million for not adequately addressing data management issues identified in 2020. The enforcement action by the Federal Reserve and OCC focuses on Citi’s efforts to fix data problems and manage ongoing risks, with CEO Jane Fraser facing regulatory challenges and staff layoffs.

Citigroup had previously been fined $400 million in 2020 for deficiencies in risk management and internal controls. Despite agreeing to a plan to address data issues, a Fed exam last year found the bank had not made sufficient progress. The OCC is now requiring the bank to dedicate more resources to meeting regulatory milestones.

Fraser acknowledged setbacks in a memo to employees, emphasizing the importance of ongoing transformation efforts. The bank has increased investment in its reorganization but faces challenges in areas like data management. Citi remains committed to addressing regulatory issues, with shares falling 1.3% in after-hours trading amid the news.

Regulators have previously expressed concerns about Citi’s default risk measurement practices and internal oversight. The Federal Deposit Insurance Corporation has also raised issues with the bank’s living will plans. Despite ongoing regulatory challenges, portfolio manager David Wagner remains positive on Citi’s stock outlook.



Read more at Investing.com: US regulators fine Citi $136 million for failing to fix longstanding data issues By Reuters