Citigroup submits multiyear plan to address Fed concerns

Citigroup has submitted a comprehensive multiyear plan to the Federal Reserve and the Office of the Comptroller of the Currency outlining steps to fix weaknesses in its risk management and internal controls, two sources familiar with matter said.

The plan, which was given to regulators this week, aims to address a 2020 directive from the Fed demanding that the bank correct several “longstanding deficiencies” in its internal controls. The Office of the Comptroller of the Currency (OCC) imposed a $400 million fine on Citi in 2020, citing similar concerns.

The document lays out a multiyear roadmap to rectify problems by the end of 2027 or early 2028, the sources told Reuters. The program includes more detailed steps that the bank will take in the year ahead as it prioritizes fixing its highest risk areas, one of the people said.

The plan outlines how Citi aims to improve its risk infrastructure, data quality and internal governance, the two sources said. The Wall Street Journal reported earlier this week that Citigroup was due to submit the plan on Thursday.

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