- Fines Imposed:
- The Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board fined Citigroup a combined $135.6 million.
- OCC fined $75 million for failing to meet remediation milestones and data quality concerns.
- Federal Reserve Board fined $60.6 million for ongoing deficiencies in data quality management.
- Background:
- The fines relate to a 2020 consent order addressing Citibank’s data governance, internal controls, risk management, and compliance risk.
- The original 2020 consent order resulted in a $400 million fine.
- The 2020 order remains in full force and effect.
- OCC’s Position:
- The OCC amended its 2020 consent order due to Citibank’s failure to make sufficient progress.
- Acting Comptroller Michael J. Hsu emphasized the need for Citibank to refocus on corrective actions and allocate appropriate resources.
- Federal Reserve Board’s Position:
- A 2023 examination found ongoing deficiencies in Citigroup’s data quality management.
- Citigroup’s progress in enhancing its data quality management program has been inadequate.
- Citigroup’s Response:
- CEO Jane Fraser acknowledged the slow progress in data quality management.
- Fraser stated that Citigroup has intensified its focus and increased investment to address these areas.
- Context:
- Citigroup announced earlier this year that it will cut around 20,000 jobs by 2026.
- The job cuts follow a disappointing fourth quarter of 2023, with a reported $1.8 billion net loss.
