Citi(US:C) 智通财经网·2025-12-18 11:35Core Viewpoint - The Federal Reserve has informed Citigroup that it has terminated a formal notice requiring the bank to address deficiencies in its trading risk management, marking a significant step in resolving long-standing regulatory and control issues for the third-largest bank in the U.S. [1] Group 1: Regulatory Notifications and Issues - The Federal Reserve had previously issued a notice to Citigroup at the end of 2023, requiring the bank to address three "matters requiring immediate attention" (MRIA) related to the calculation and management of counterparty risk and capital reserves for potential losses [1][2] - One MRIA specifically required Citigroup to improve its data management and governance regarding capital reserves for counterparty credit risk, which is essential for determining the amount of capital needed to mitigate potential losses [2] - Other MRIA issues included the use of proxy indicators for calculating counterparty credit risk when data is unavailable and governance deficiencies related to unclear responsibility among various legal entities within the bank [2] Group 2: Historical Regulatory Challenges - Citigroup has been dealing with significant regulatory penalties over the years, including two penalties stemming from a $9 billion erroneous transfer to a creditor of Revlon in 2020, which necessitated improvements in the bank's control measures [3] - In 2024, the Federal Reserve and the Office of the Comptroller of the Currency imposed a fine of $136 million on Citigroup for failing to improve data governance and quality [4] - The bank's CFO recently stated that significant progress has been made in addressing these issues, aligning with earlier comments from the CEO regarding the transformation efforts [4]