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Citigroup (NYSE:C) was ordered to pay $135.6M to two U.S. regulators for failing to make sufficient progress in remediating problems with data quality management, the Federal Reserve Board and the Office of the Comptroller of the Currency said on Wednesday.
The bank was fined for violating the Federal Reserve’s and OCC’s 2020 consent orders against Citi (C). The company failed to implement compensating controls to manage its ongoing risk, the Fed said.
The Fed fined Citi (C) $60.6M and the OCC assessed a $75M civil penalty.
“While the bank’s board and management have made meaningful progress overall, including taking necessary steps to simplify the bank, certain persistent weaknesses remain, in particular with regard to data,” said Acting Comptroller of the Currency Michael J. Hsu.
Citi (C) CEO Jane Fraser said, “We have acknowledged that, despite making good progress in simplifying our firm and addressing our consent orders, there are areas where whe have not made progress quickly enough, such as in our data quality management.”
She added that the company has intensified its focus and increased its investment in those areas in the last several months. “As we’ve said from the beginning of this multi-year effort, we’re committed to spending what is necessary to address our consent orders, as our agreement with the OCC demonstrates.”
Citi (C) stock fell 1.5% in Wednesday after-hours trading.