Citi added new section on reorganization in quarterly report following US SEC query

(Reuters) – Citigroup’s addition of a new section concerning its multi-year reorganization to its quarterly report filed with the U.S. Securities and Exchange Commission in August, followed queries from the markets regulator.

The SEC’s letter to Citi, which was sent in June and disclosed on Wednesday, had asked the bank to revise future filings.

In July, U.S. bank regulators fined Citi $136 million for making “insufficient progress” fixing data management issues identified in 2020 and required the bank to demonstrate that it was making sufficient efforts.

“This new section will discuss Citi’s broader transformation efforts, which also include efforts to implement the October 7, 2020 FRB and OCC consent orders,” the lender had responded to SEC in a letter on July 10, which was disclosed on Wednesday.

Citi CEO Jane Fraser is carrying out a sweeping overhaul in an effort to improve the bank’s performance, cut costs and simplify its sprawling businesses.

As part of the turnaround, Citi aims to shrink its workforce by 20,000 over the next two years.

“Despite making good progress in simplifying our firm and addressing our consent orders, there are areas where we have not made progress quickly enough,” Fraser had said after the regulatory action was disclosed.

The bank also added a section discussing the 2024 consent orders to its second quarter report, as part of its efforts to enhance regulatory disclosures.