Citigroup announced that the U.S. Federal Reserve has removed the formal supervisory notices that had required the bank to address weaknesses in its trading‑risk management framework. The notices, issued in late 2023 and classified as Matters Requiring Immediate Attention (MRIAs), had imposed additional compliance and capital‑holding requirements on the bank’s trading operations.
The MRIAs focused on three core areas: the measurement of counterparty risk, the allocation of capital against potential trading losses, and the quality and governance of data used in risk calculations. Citigroup had been working to integrate legacy systems, improve data consistency, and strengthen internal controls. The Fed’s decision signals that the bank’s remediation efforts have met regulatory expectations and that the identified deficiencies have been adequately addressed.
By lifting the notices, the Fed has effectively reduced the capital reserves Citigroup must hold against trading activities and removed a layer of supervisory oversight that had constrained operational flexibility. The relief is expected to lower compliance costs and free capital that can be deployed toward strategic initiatives, such as technology investments and the ongoing simplification of the bank’s business structure. CEO Jane Fraser has highlighted the regulatory milestone as a key component of her broader transformation agenda, which aims to streamline operations and enhance profitability.
Finance chief Michael K. Smith said the bank had made “significant progress on transformation work to address the issues” that prompted the MRIAs. Citigroup remains subject to other regulatory actions, including a 2020 mistaken $900 million payment to Revlon creditors and a 2024 fine of $136 million for data‑governance failures, but the removal of the trading‑risk notices marks a major step forward in the bank’s risk‑management overhaul.
The regulatory relief is expected to improve Citigroup’s balance‑sheet efficiency and support the bank’s long‑term strategy of delivering higher returns to shareholders while maintaining robust risk controls. Investors and analysts will likely view the development as a positive signal of the bank’s ability to execute on its transformation plan and to navigate a complex regulatory environment.
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