Regulators have fined Citigroup a combined $135.6 million, saying the lender failed to make enough progress in resolving internal data management and risk issues.
Citigroup has “made insufficient progress remediating its problems with data quality management and failed to implement compensating controls to manage its ongoing risk,” the Federal Reserve Board said, adding that it is still monitoring Citigroup’s efforts to comply with the 2020 agreement.
The OCC said its fine, to be paid to the U.S. Treasury, was for the bank’s “failure to meet remediation milestones and make sufficient and sustainable progress towards compliance with the 2020 order” and its “lack of processes to monitor the impact of data quality concerns on regulatory reporting.”
Citigroup Has Not Made Progress Fast Enough, CEO Says
Mr. Hsu stressed that the bank must “refocus its efforts on taking necessary corrective actions and ensuring appropriate resources are allocated for this purpose.”In a statement issued on the day the fines against Citigroup were announced, CEO Jane Fraser said the bank had made “good progress” in addressing the consent orders.
However, she acknowledged there are areas in which it has “not made progress quickly enough,” including its in data quality management.
The bank has intensified its focus and increased its investment in its transformation efforts over the last several months and is committed to spending what is necessary to address the regulatory issues, she said.
“We’re confident that we have the financial resources to support both our transformation and investment in our businesses as well as meet our strategic and financial goals, including the capital distribution we described in late June,” the CEO said. “We’ve always said that progress wouldn’t be linear, and we have no doubt that we will be successful in getting our firm where it needs to be in terms of our transformation.”