Compliance Today (January 2021)

Just a few months before Jane Fraser takes over as chief executive officer—the first woman to run a major Wall Street bank^[1] —Citigroup agreed to pay $400 million to settle an Office of the Comptroller of the Currency (OCC) investigation of its risk management and internal controls processes.

In an October 7 release,^[2] the OCC cited a “long-standing failure to establish effective risk management and data governance programs” and generally unsound business practices as the reason behind the investigation and fines. The agreement between the OCC and Citigroup also requires Citigroup to vet acquisitions with the OCC before they can proceed, as well as other oversight measures.

Citigroup settled a similar investigation conducted by the Federal Reserve Board, which was announced^[3] the same day.

1 Ken Sweet, “Jane Fraser to become Citi CEO; 1st woman to lead major bank,” The Associated Press, September 10, 2020, https://bit.ly/38eq3OI.
2 Office of the Comptroller of the Currency, “OCC Assesses $400 Million Civil Money Penalty Against Citibank,” news release, October 7, 2020, https://bit.ly/2TGr8qe.
3 Board of Governors of The Federal Reserve System, “Federal Reserve announces enforcement action against Citigroup Inc. that requires the firm to correct several longstanding deficiencies,” news release, October 7, 2020, https://bit.ly/2TE7P0x.

[View source.]