“Citi has significant remediation projects under way to strengthen our controls, infrastructure and governance.”The public rebuke marks a major escalation of regulators’ efforts to get Citigroup to fix its risk systems. For years, the Fed and the OCC have privately pushed Citigroup Chief Executive Michael Corbat to give priority to an overhaul of the systems. The consent orders from the OCC and Fed leave Citigroup with a lengthy to-do list. The regulators ordered the bank to form a new board committee to oversee the risk overhaul and to develop plans for holding management accountable. The OCC order requires Citigroup to seek approval for any acquisition and gives the regulator power to order the bank to replace managers or directors.

Source: Wall Street Journal October 07, 2020 20:40 UTC