Citigroup is fined $400 million over ‘longstanding’ internal problems. (Published 2020) (2024)

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Citigroup is fined $400 million over ‘longstanding’ internal problems. (Published 2020)? ›

Citigroup is fined $400 million over 'longstanding' internal problems. Two months after one of its bankers accidentally sent nearly $1 billion to the wrong people, Citigroup agreed to pay $400 million to federal regulators over long-running problems keeping its daily operations under control.

"The CFPB found that Citi purposefully discriminated against applicants of Armenian descent, primarily based on the spelling of their last name,” said CFPB Director Rohit Chopra. "Citi stereotyped Armenians as prone to crime and fraud. In reality, Citi illegally fabricated documents to cover up its discrimination.”

Citi failed those exams, forcing it to do additional work, the source said. The regulatory notices come as the bank works through two 2020 consent orders, in which the Fed and the OCC directed the bank to fix longstanding and widespread deficiencies in its risk management, data governance and internal controls.

Citigroup is defending itself against a separate lawsuit that alleges workplace harassment in New York. Ardith Lindsey, a managing director, has accused Citi of downplaying her complaints about a senior equities banker who she said subjected her to years of abuse including sexual advances and death threats.

NEW YORK, Nov 8 (Reuters) - Citigroup Inc (C.N) , opens new tab has agreed to pay $25.9 million to settle U.S. Consumer Financial Protection Bureau (CFPB) charges it intentionally discriminated against credit card applicants who the bank identified as Armenian-American based on their last names.

One cause of Citi's problems is foreign loans to questionable governments. For example, Citigroup (C) admits to losing $880 million when they devalued the Argentine peso in the fourth quarter of 2023. Similarly, Citi has a $1.3 billion transfer risk associated with Russia and Argentina.

During its early years, Citigroup was embroiled in a series of high-profile scandals, including tainted transactions with Enron and WorldCom, biased research advice, corrupt allocations of shares in initial public offerings, predatory subprime lending, and market manipulation in foreign bond markets.

The latest reshuffle finalizes Citi's new structure and is part of a broader goal to trim its global workforce of 239,000 by 20,000 over the next two years. Citi eliminated 1,500 managerial roles comprising 13% of its worldwide leaders, Fraser said as the company released its fourth-quarter results in January.

The Citibank case marks the hacker community's first foray into big-money banking. In 1994, Russian hacker Vladimir Levin engineered a heist from Citibank, tricking the company's computers into distributing an estimated $10 million to him and his accomplices in several countries.

The embattled bank on Friday reported $1.8 billion in losses in the fourth quarter of 2023, while revenue fell 3% to $17.4 billion from last year, according to its latest financial filings. The layoffs could save the bank as much as $2.5 billion, Citigroup's presentation to investors shows.

What bank owns Citigroup? ›

Key Points. Citigroup is a global, publicly owned financial services company. Citigroup's largest shareholders include Vanguard, BlackRock, State Street Corporation, and Berkshire Hathaway.

Employees in India have given Citi a rating of 3.9 out of 5 stars, based on 2,905 company reviews on Glassdoor. This indicates that most employees have a good working experience in India.

Citibank was sued by New York Attorney General Letitia James for allegedly failing to adequately protect customers from online banking scams and refusing to reimburse victims.

There is a $5.00 Monthly Service Fee for Access Checking and a $15.00 Monthly Service Fee for Regular Checking. However, Citi will not charge you a Monthly Service Fee in the month of account opening or for the first three (3) full calendar months after account opening.

Citibank will likely review your annual earnings and current employment information to determine if you have sufficient income to take on a personal loan. Many lenders, like Citibank, will evaluate your debt-to-income (DTI) ratio, which measures your monthly income against your monthly debt obligations.

In both cases, protesters called on the megabank to release plans winding down its financing of the fossil fuel industry and, crucially, to support a shareholder proposal at its April 26th shareholder meeting calling on Citi to cease its support for fossil fuel expansion.

Levin, they say, used telecommunications systems, not the internet, to break into Citibank. He was able to intercept Citibank customers' phone calls and, as the customers authenticated their accounts by punching in their account numbers and PINs, obtain the information he needed to commit the fraudulent transactions.

“Citi believed that Armenian Americans were prone to engage in criminal fraud,” CFPB Director Rohit Chopra said in a November 8 statement. “Citi often rejected these applicants outright. When Citi did not, the bank subjected those who may be of Armenian descent to additional scrutiny.”