Citigroup faced a setback as government regulators imposed a hefty fine of $135.6 million on the bank due to unresolved internal control and risk issues. The Federal Reserve and the Office of the Comptroller of the Currency issued the fines, highlighting Citigroup’s failure to address concerns laid out in a 2020 consent order regarding its risk and control problems. Despite some progress, regulators identified ongoing significant issues at the bank, necessitating additional penalties.
Acting Comptroller of the Currency Michael J. Hsu emphasized that Citibank must expedite its transformation efforts to rectify long-standing deficiencies promptly. Citigroup’s CEO, Jane Fraser, admitted in a statement that the bank has not made sufficient progress within the expected timeframe and acknowledged the need for Citibank to reduce its risk profile effectively.