Citigroup says it’s in dialogue with regulators on consent order

NEW YORK (Reuters) – Citigroup (NYSE:) Chief Executive Jane Fraser said on Friday the bank is having “constant and constructive” dialogue with regulators about a consent order issued two years ago requiring the bank to improve its risk management and internal controls.

“Transformation is our number one priority,” Fraser told analysts after the company reported third quarter earnings. “It will be a multiyear journey and prioritizing safety and soundness is very important.”

Reuters reported last month that Citigroup had 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, citing two sources familiar with the matter.

The plan 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.

“We have constant and constructive engagement with our regulators,” Fraser said Friday. “Personally, I find them to be very helpful and essential to our success.”

The bank has been investing heavily in hiring people and adding resources to address the issues, she said, but declined to provide more details because the cleanup effort involves “confidential supervisory information.”

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