WASHINGTON (Reuters) – U.S. banking regulators fined Citigroup $136 million for failing to make adequate progress in fixing data management issues the agencies identified in 2020, the Federal Reserve said on Wednesday.
The joint enforcement action by the Federal Reserve and the Office of the Comptroller of the Currency (OCC) relates to “insufficient progress” Citi has made in addressing data management issues and implementing controls to manage that ongoing risk, the Fed said.
Regulators fined the bank $400 million in 2020 after identifying “ongoing deficiencies” in Citigroup’s handling of several areas of risk management and internal controls, including data quality management.
The bank agreed to a broad plan to fix its data quality and management problems, but a Fed review last year found the bank still had deficiencies and had not made adequate progress on the order, the Fed said.
“Citigroup violated the 2020 Order by delaying compliance with the milestones included in its approved plan,” the Fed said Wednesday.
The fine is another blow to Citi Chief Executive Jane Fraser's efforts to fix the bank's regulatory problems and streamline its structure.
“We have acknowledged that, while we have made good progress in simplifying our firm and addressing our consent orders, there are areas where we have not moved quickly enough, such as in our management of data quality,” it said in a statement.
Fraser added that the bank has intensified its focus and increased its investment in those areas over the past few months.
Top bank executives also said last month they were stepping up efforts to address regulatory issues.
In February, Reuters reported that U.S. regulators had asked Citi to make urgent changes to how it measures the default risk of its trading partners, and the bank's own auditors found it lacking a plan to improve internal oversight.
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