Citigroup Hit With $400 Million Fine, Enforcement Orders

citigroup-hit-with-$400-million-fine,-enforcement-orders

By Yasin Ebrahim

Investing.com – Citigroup fell in after-hours Wednesday after the Federal Reserve Board and the Office of the Comptroller of Currency issued the company with a $400 million penalty and enforcement action over its risk management issues.

Citigroup Inc (NYSE:C) was down 1.4% in after-hours trade.

“We are disappointed that we have fallen short of regulators’ expectations… the consent orders will not impact the ability serve our clients in any way,” Citi said.

The reprimand was related to “deficiencies in enterprise-wide risk management, compliance risk management, data governance, and internal controls,” the Office of the Comptroller of Currency said.

The inadequacies of Citi’s risk management practices were exposed in August when the bank mistakenly transmitted $900 million to lenders of Revlon.

“We are completely committed to improving our risk and control environment,” a Citi spokeswoman said, according to the Wall Street Journal. “However, while we have made significant and demonstrable progress … we recognize that we are not yet where we need to be and that has to change,”  the bank told the Journal in August.

 

 

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