Regulators Demand Accelerated Risk Management Improvements from Citigroup

Following recent regulatory notices, Citigroup faces increased pressure to address deficiencies in risk management and internal controls.

Regulators have intensified their demands on Citigroup to expedite improvements in its risk management systems, following a series of regulatory notices.
Citigroup has been under scrutiny since 2020 due to consent orders from the Federal Reserve and the Office of the Comptroller of the Currency, aimed at addressing deficiencies in risk management and internal controls.
The Federal Reserve issued three notices to Citigroup in late 2023, setting deadlines for the bank to adjust its risk measurement practices, particularly concerning default risks in derivative transactions.
Citigroup's internal audit has identified areas where the bank's risk management efforts are insufficient, and it has failed to meet the requirements for comprehensive risk reporting to its board and senior management.
Citigroup is undergoing a major overhaul, including job cuts and business restructuring, to improve its efficiency and shareholder returns, amidst ongoing regulatory challenges.