Posts Tagged ‘citigroup’
Citi Gets $136M Butt-Kick
The compliance drama-rama at Citigroup continues! Regulators just imposed another $136 million in new monetary penalties for the bank’s failure to complete compliance and risk management improvements required by a previous consent order from 2020, which had imposed a $400 million penalty of its own. So that’s more than half a billion dollars Citigroup is…
Read MoreLessons From Citigroup’s Fat Finger
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…
Read MoreThe Grueling Work of Ethics Enforcement
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…
Read MoreCitigroup Internal Audit Hiring Spree
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…
Read MoreCitigroup, Part IV: Compliance Risk
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…
Read MoreCitigroup, Part III: Better Board Oversight
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…
Read MoreCitigroup, Part II: Better ERM Program
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…
Read MoreCitigroup’s Governance Issues, Part I
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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