Federal Reserve announces enforcement action against Citigroup Inc. that requires the firm to correct several longstanding deficiencies

[Emily]

https://www.federalreserve.gov/newsevents/pressreleases/enforcement20201007a.htm
October 07, 2020
Federal Reserve announces enforcement action against Citigroup Inc. that requires the firm to correct several longstanding deficiencies

For release at 4:30 p.m. EDT


The Federal Reserve Board on Wednesday announced an enforcement action against Citigroup Inc. of New York, New York, that requires the firm to correct several longstanding deficiencies.
In particular, the cease and desist order requires Citigroup to enhance its firm-wide risk management and internal controls. Among other things, the firm has not taken prompt and effective actions to correct practices previously identified by the Board in the areas of compliance risk management, data quality management, and internal controls.
The Board's action applies to the bank holding company and is being taken in conjunction with a separate action from the Office of the Comptroller of the Currency, which oversees the national bank.
For media inquiries, call 202-452-2955.

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[sharon sanders]

bump this

 

[Emily]

They got a $400,000,000 fine and can't make acquisitions without approval. The article says that Citi accidentally lent Revlon $900,000,000 recently and are in litigation to retrieve it. That might be an indicator of poor internal controls.
https://www.americanbanker.com/news/citi-hit-with-pair-of-enforcement-actions-fined-400m