Citi Issues Statement in Response to Consent Orders From Regulators
Citi expressed disappointment in response to the Consent Orders from the Federal Reserve and the Office of the Comptroller of the Currency. The bank is committed to addressing the identified issues and has ongoing multi-year remediation projects to enhance controls and governance. Over $1 billion will be invested this year towards these initiatives. Despite challenges, Citi reported growth in loans and deposits in the first half of the year, maintaining a Common Equity Tier 1 Capital ratio of 11.6% and a Liquidity Coverage Ratio of 117%. The company aims to fulfill its obligations to stakeholders.
- Citi plans to invest over $1 billion this year in remediation efforts.
- The bank recorded growth in loans and deposits in H1.
- Common Equity Tier 1 Capital ratio remains strong at 11.6%.
- Liquidity Coverage Ratio at 117%, exceeding regulatory requirements.
- Citi fell short of regulatory expectations as highlighted in the Consent Orders.
NEW YORK--(BUSINESS WIRE)--Citi issued the following statement in response to the Consent Orders issued today by the Federal Reserve Board and the Office of the Comptroller of the Currency:
“We are disappointed that we have fallen short of our regulators’ expectations, and we are fully committed to thoroughly addressing the issues identified in the Consent Orders.
“Citi has significant remediation projects underway to strengthen our controls, infrastructure and governance.
“These projects are each multi-year and have received significant investment. However, while we have made progress in each of these areas, we recognize that substantial improvement is still required to meet the standards we have set for ourselves and that our regulators expect of us.
“We have thus redoubled our efforts and have made transforming our risk and control environment a strategic priority. We have made this commitment publicly; Michael Corbat and Jane Fraser made a point of addressing it when we announced our CEO transition and our CFO, Mark Mason, described our approach in detail at a recent investor conference.
“To that end, we have accelerated investments and made structural changes. This year alone, we will invest over
“At the same time, we remain focused on our response to COVID-19, especially in terms of the crisis’ impact on our credit portfolio, the financial markets, our clients, colleagues and the communities we serve. Our clients and customers are depending on us to support them through this crisis.
“We have the resources we need to do so and the Consent Orders will not impact our ability to serve them in any way. In the first half of the year, we grew both loans and deposits and increased our regulatory capital, ending the second quarter with an
“We appreciate the urgency of the tasks at hand and we are committed to fulfilling our obligations to all of our stakeholders.”
About Citi
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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