Citigroup Accelerates Regulatory Fixes to Lift Consent Orders
Citigroup is fast-tracking the resolution of risk management deficiencies to lift 2020 regulatory consent orders and refocus on organic growth.
Citigroup Inc. is attempting to rapidly resolve long-standing regulatory burdens to refocus on growth and lift consent orders issued in 2020. The bank is preparing a comprehensive audit for the Federal Reserve and the Office of the Comptroller of the Currency to address deficiencies in risk management and data governance.
These regulatory issues originated from a botched $900 million transfer to Revlon creditors, which resulted in a $400 million fine. CEO Jane Fraser stated the bank is approximately 90% complete with the required regulatory work. While the bank previously targeted a 2026 completion date, the firm is now under pressure to finalize the process sooner to leverage favorable banking policies under the current administration.
Resolving these orders is critical for the bank to scale its retail and wealth management businesses, which currently face heightened regulatory scrutiny. The bank maintains that its current operational structure is fundamentally different from the start of its transformation process.
