Citigroup has been fined $136 million by US bank regulators for failing to make adequate progress in resolving data management issues found in 2020. The Federal Reserve and Office of the Comptroller of the Currency (OCC) cited ongoing deficiencies in Citi's risk management and internal controls. Despite an initial $400 million fine in 2020 and a comprehensive plan to rectify the issues, recent examinations revealed that the bank had not met the required milestones, prompting further penalties.
CEO Jane Fraser is navigating these regulatory challenges while restructuring the bank and laying off thousands of employees. The OCC has mandated a new quarterly process to ensure adequate resource allocation for meeting compliance milestones. Although Citi has intensified its focus on transformation efforts, setbacks in data quality management persist. Despite these hurdles, some analysts remain optimistic about Citi's stock, viewing the regulatory issues as a long-term challenge rather than an immediate threat to the bank's overall performance.
