Sen. Warren wants growth limits on Citi, according to letter to OCC - report
Sen. Elizabeth Warren has urged regulators to impose growth limits on Citigroup due to ongoing regulatory issues. In a letter to Acting Comptroller Michael Hsu, she argued that Citi's inability to resolve problems related to data and controls indicates it is "too big to manage." Recently, Citi was fined $6 million for inadequate progress on data quality management and faced violations of Federal Reserve rules. Following these developments, Citi's stock fell 1.3% in trading on Thursday.
- Sen. Elizabeth Warren (D-MA), who has been a long-time critic of Wall Street banks, asked one of Citigroup's (NYSE:C) regulators to limit the company's growth as it deals with numerous regulatory problems, according to a media report.
- In a letter to Acting Comptroller of the Currency Michael Hsu, Warren contended that Citi's (C) struggles to fix a string of regulatory issues focusing on data, controls and other problems demonstrate that the bank has become "too big to manage," Reuters reported on Thursday.
- In July, the Federal Reserve and the Office of the Comptroller of the Currency ordered Citi (C) to pay $135.6M for failing to make sufficient progress in fixing problems with its data quality management. Later that same month, Reuters reported that the bank broke Federal Reserve rules on intercompany transaction limits, which led to errors in its internal liquidity reporting.
- On Tuesday, the Federal Reserve ended an enforcement action against Citibank N.A. and Banamex USA related to a 2013 consent order over deficiencies in their anti-money laundering compliance programs.
- Citi (C) stock fell 1.3% in Thursday afternoon trading.
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