Citigroup Gets £136 Million in a Regulatory Fine – The Bank is Feeling the Heat
Last week, the Federal Reserve and the Office of the Comptroller of the Currency (OCC) slapped Citigroup with a £136 million* fine for lingering data‑management blunders that were first uncovered in 2020. It’s the latest reminder that big banks cannot bribe the system with “soon‑ish” compliance.
Why the Big Bucks?
Back in 2020, Citigroup had already paid a hefty £400 million for failing risk‑management and internal‑control standards. Even after the bank rolled out correction plans, the Fed still saw the progress as “insufficient” – like a toddler who repeatedly asks for a cookie when the bedtime story is still going on. The new penalty signals regulators are not cutting any slack.
What Jane Fraser is Facing
Jane Fraser, the CEO of the conglomerate, is now under increased pressure. She has to:
- Implement a rigorous quarterly process to stay on top of regulatory milestones.
- Spruce up procedures that measure the chance of business partners defaulting.
- Strengthen internal supervision so that shaky decks don’t sink the ship.
- Address concerns from the FDIC about her proposed “living will” (a contingency plan for a bank’s potential collapse).
Fraser admitted the setbacks and promised a more aggressive transformation of the bank’s operations – but she added the journey won’t be a straight line, more like a roller coaster with some unexpected loops.
Regulators Demand “A Fresh Look”
The OCC has ordered Citigroup to have a quarterly strategy to make sure there are enough resources in place to attain regulatory milestones. “We expect thoroughness and consistency,” the regulators said, a stern reminder that “half‑hearted” fixes just won’t cut it.
Why Does This Matter?
Citigroup’s fine underscores the urgent need for:
- Robust data‑management that can survive the scrutiny of federal watchdogs.
- Better risk controls that keep the bank from being a ticking time bomb.
- Operational stability that restores public trust in one of America’s most influential financial institutions.
For the bank and across the industry, the message is clear: the era of “adequate but not over‑the‑top” compliance is over. It’s time to channel the energy into real fixes and not just “good intentions.”
*The fine was announced in U.S. dollars but is often converted to pound sterling in global news for better context.
