Citigroup (NYSE:C) Fined $400 Million By The OCC Over Risk Management And Quality Control Practices

Citigroup Inc. (NYSE:C) has agreed to pay a fine of $400 million over deficiencies related to internal controls and risk management, according to the Office of the Comptroller of Currency. A statement from the OCC said that the company has to seek its “non-objection before considering any new acquisitions.

Citigroup warned of its risk management practices

The fine comes nearly two months after one of the company’s bankers accidentally sent almost $1 billion to the wrong individuals. On Wednesday, the OCC and the Federal Reserve indicated that Citi has been conducting unsound and unsafe banking practices, including compromising the money laundering program. The regulators said that the company had failed to fix acknowledged issues for years. The OCC labeled Citi’s deficiencies as a longstanding failure to implement effective risk management. If the bank fails to address its shortcomings, the OCC has threatened business restrictions on the bank, including a change in senior management.

The Fed has also hit the bank with a sanction giving it several deadlines to analyze and report back on measures it has taken to address risk management issues and hold the executive leadership accountable. The bank is in a transition period as its current CEO Michael Corbat is expected to step down early 2021. Citigroup’s President Jane Fraser is expected to take over and will need to make changes that will satisfy the regulators.

Citi expected to define executive roles

Among the steps she is expected to take is making executive roles clearer and creating a robust connection between their pay and the company’s effective stewardship. In a statement, the bank said that it was disappointed for falling short of regulators’ expectations. The bank gave assurance of its commitment to address the identified issues.

The bank faces a series of problems, and recently a banker sent almost $900 million accidentally to Revlon and has since struggled to recoup the money. It has sued Brigade Capital Management to force it to give back $175 million, but the hedge fund claims it is entitled to the money.

Please make sure to read and completely understand our disclaimer at We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact

Published by Fiona Gibson

Fiona is a finance graduate and an expert in analyzing market trends.

Recent Stories

SignUp Now For Our Featured Newsletter