Lessons From Citigroup’s Fat Finger

citigroup

This week Citigroup agreed to pay $78 million to settle charges that its internal controls failed to catch a so-called “fat finger error” in 2022, when a Citigroup trader placed a gigantic sell order by mistake and sent European stock markets plunging. Compliance officers should pull up a chair; we have several lessons to learn…

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The Grueling Work of Ethics Enforcement

ethics

We have a rather pointed teachable moment about corporate ethics from London this week: an employment tribunal there has upheld a decision by Citibank to fire an employee who padded his expense report by a trivial amount — but then lied about it to ethics investigators, which cost him his job. Our tale, first reported…

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Citigroup Internal Audit Hiring Spree

citigroup

Citigroup announced today that it plans to hire at least 100 additional internal auditors  next year, one of the largest single hiring sprees we’ve seen in the field in years. If any audit professionals out there like the banking sector and want a change of pace, here’s your big chance.  Citi already has more than…

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Citigroup, Part IV: Compliance Risk

compliance

We finish our examination of the Citigroup enforcement action with a look at the issue most dear to compliance officers’ hearts: compliance risk, and how Citigroup needs to improve its compliance risk management function to meet regulators’ expectations. First, the backstory. On Oct. 7 the Office of the Comptroller of the Currency levied a $400…

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Citigroup, Part III: Better Board Oversight

citigroup

Today we return to Citigroup and its $400 million regulatory settlement from earlier this month, a case that offers a cornucopia of lessons for risk and compliance professionals. This time around, we consider what Citi’s board will need to do to rectify the bank’s poor internal governance.  First, let’s recap the case so far. The…

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Citigroup, Part II: Better ERM Program

risk assessments

Today we continue our in-depth look at the enforcement action against Citigroup, because the case truly does raise a host of interesting audit and compliance issues. Our prior post looked at Citigroup’s struggles with data governance; now let’s examine how the bank needs to revamp its enterprise risk management. The consent order from the Office…

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Citigroup’s Governance Issues, Part I

citigroup

Banking regulators have walloped Citigroup with a $400 million fine and a freeze on new acquisitions without regulatory approval, and given the bank a long list of improvements to make after years of ineffective risk management and poor internal control. The rebuke wasn’t unexpected, but is still tough medicine to swallow. Compliance professionals have much…

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