Citigroup Fined $400M Over Risk System Defects - CFO

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"The public rebuke marks a major escalation of regulators' efforts to get Citigroup to fix its risk systems."
U.S. banking regulators have fined Citigroup $400 million for failing to correct "serious and longstanding deficiencies" in its risk-management systems.

Citigroup agreed to the fine as part of a settlement with the Office of the Comptroller of the Currency that also requires it to "take broad and comprehensive corrective actions to improve risk management, data governance, and internal controls."

The bank also entered into a similar consent order with the Federal Reserve that said it had "not adequately remediated the longstanding enterprise-wide risk management and controls deficiencies" previously identified by the Fed.

The OCC cited deficiencies in Citigroup's enterprise-wide risk management and compliance risk management programs,…
Matthew Heller
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