Regulators Prepare To Reprimand Citigroup For Failing To Improve Risk Systems
Seeking Alpha Analyst Since 2013
Summary
- Federal regulators are preparing to reprimand Citigroup Inc. for failing to improve its risk-management systems—an expansive set of technology and procedures designed to detect problematic transactions, risky trades and etc.
- Citigroup on Thursday said Mr. Corbat will retire in February, surprising analysts and investors who expected him to remain in the job for a few more years.
- https://www.bloomberg.com/news/articles/2020-09-14/citi-said-to-face-possible-occ-fed-reprimand-over-risk-controls.
- https://www.wsj.com/articles/regulators-prepare-to-reprimand-citigroup-for-failing-to-improve-risk-systems-11600107587.
- “While we never comment on our discussions with regulators, we are completely committed to improving our risk and control environment,” Citigroup said in a statement. “While we have made significant and demonstrable progress in each of these areas, we recognize that we are not yet where we need to be and that has to change. We have thus redoubled our efforts and have made improving our risk and control environment a strategic priority.”.
Citigroup is also dealing with the fallout from an erroneous payment of $900 million it made to a group of hedge funds that were acting as lenders to the cosmetics giant Revlon Inc. Mason on Monday called the error unacceptable, saying the firm accelerated plans for new software to handle such payments as part of its push to improve its risk and control functions.
Analyst's Disclosure: I am/we are long C, JPM, WFC, XLF.
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