Citi failed with internal controls and risk management, according to the US regulatory agency OCC. The US bank promises improvement, the share loses after hours.
The major bank Citigroup has to pay a heavy fine for various rule violations in the USA numbers. The Federal Reserve (Fed) accuses the bank of persistent deficiencies in group-wide risk management and internal controls. Due to the longstanding failureTo remedy the deficits, a fine of 400 million dollars (340 million euros) has been imposed, the OCC announced on Wednesday (local time). Extensive corrective measures are necessary for the financial institution.
The Citigroup admitted weaknesses in a statement and promised improvement. The company is disappointed that it has not been able to meet the supervisors’ expectations.
Citigroup shares initially reacted with slight price losses after the trading hours. The financial group had only announced in September that CEO Michael Corbat would resign in February. With her successor Jane Fraser, a woman was appointed to the head of a major US bank for the first time.