Citigroup 2024 Recap⚠️
-Subject to FINRA disqualification for aiding and abetting
-Failed Stress Test after Fed identified "weakness" in Resolution (Bankruptcy) Plan
-Fined for bad books/inability to manage "ongoing risk"Did I mention they have $30 Trillion in Swaps? pic.twitter.com/ej4JQmhQ3X
— M.B. (@741trey) July 11, 2024
- Stress Test Results (2024):
- Citigroup completed the Federal Reserve Board’s 2024 annual supervisory stress test process.
- The indicative Stress Capital Buffer (SCB) requirement for Citigroup decreased to 4.1% (from the previous 4.3%).
- The preliminary Standardized Common Equity Tier 1 (CET1) capital ratio regulatory requirement is now 12.1% (down from 12.3%), effective October 1, 2024.
- The final SCB requirement will be provided by the Federal Reserve Board by August 31, 2024, and will remain in effect until September 30, 2025.
- Fines and Risk Management:
- In the past, Citigroup faced fines related to risk management and data governance issues.
- The Federal Reserve Board fined Citigroup $60.6 million in 2024 for violating the Board’s 2020 enforcement action due to problems with data quality management and insufficient progress in remediation.
- Additionally, in 2020, the Office of the Comptroller of the Currency (OCC) assessed a $400 million civil money penalty against Citibank for its long-standing failure to establish effective risk management and data governance programs.
Regulators say Citigroup still doesn’t totally have its house in order
Bank hit with $135.6 million in penalties stemming from 2020 order. CEO admits ‘there are areas where we have not made progress quickly enough.’
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