Regulators Fine Citigroup $400 Million Over ‘Serious Ongoing Deficiencies’
Fed, OCC order the nation’s third-largest bank to fix its risk-management systems
Federal banking regulators on Wednesday fined Citigroup Inc. $400 million and ordered the nation’s third-largest bank to fix its risk-management systems, citing “significant ongoing deficiencies.”
In a consent order agreed to by the New York bank’s board, the Federal Reserve faulted Citigroup for falling short in “various areas of risk management and internal controls” including data management, regulatory reporting and capital planning. The Office of the Comptroller of the Currency, in a separate consent order, said the fine was punishment for the bank's "longstanding failure" to remedy problems in its risk and data systems.
The Wall Street Journal earlier reported that the Fed and the OCC were planning to reprimand Citigroup for failing to improve its risk-management systems--an expansive set of technology and procedures designed to detect problematic transactions, risky trades, and anything else that could harm the bank.
Article written by David Benoit for the Wall Street Journal
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