ZACKS·2025-12-22 18:31Core Insights - Citigroup, Inc. has received significant regulatory relief as the OCC removed the July 2024 amendment to its 2020 consent order, which was focused on deficiencies in risk management, data governance, internal controls, and compliance [1][2] - The removal of the amendment indicates progress in the areas it targeted, allowing Citigroup to advance its transformation plan without additional regulatory burdens [2][5] Regulatory Developments - The OCC stated that the amendment was no longer necessary for the bank's safety or compliance, reflecting tangible improvements in Citigroup's operations [2] - The broader 2020 consent order remains in effect, but the removal of the amendment alleviates management's reporting and governance burdens [2][5] Transformation Strategy - Citigroup is modernizing its technology and control data, reducing reliance on external IT contractors while increasing internal technology staff [3] - The bank is investing in automation across various functions, aiming to minimize manual processes that have historically led to control weaknesses [3][5] Progress and Future Outlook - Recent actions signal growing regulatory confidence in Citigroup's ability to execute its remediation and transformation plans [5] - Management has emphasized that transformation is a top priority, with most programs now at or near target states, enabling the bank to benefit from standardized, automated, and digitized controls [5] Market Performance - Citigroup's shares have increased by 44.7% over the past six months, outperforming the industry average rise of 21.7% [11]