Citigroup's China Expansion Halted by U.S. Regulatory Penalties

The Federal Reserve's fine over data management issues delays Citigroup's plans to establish a securities firm in China.

Citigroup's expansion in China is stalled due to a $136 million fine imposed by the Federal Reserve for data management and risk control failures.
The bank is awaiting a clearance letter from the U.S. Federal Reserve, which is required by Chinese authorities to proceed with its expansion plans.
The fine is part of ongoing regulatory scrutiny, including breaches of the Federal Reserve's Regulation W and other penalties from British regulators.
Citigroup continues to engage in discussions with China's securities regulator and has no intention of withdrawing its application for a new business.
CEO Jane Fraser faces ongoing challenges in rectifying regulatory failings and streamlining operations amid these setbacks.