Citigroup's Progress: Fed Closes Risk Management Notices

The U.S. Federal Reserve has terminated formal notices for Citigroup to fix trading risk management issues, a significant move in enhancing the bank's oversight. This development boosts CEO Jane Fraser's efforts to improve bank profitability, resolving past regulatory reprimands related to inconsistent data and governance problems.

The U.S. Federal Reserve has officially closed several notices compelling Citigroup to address trading risk management weaknesses, insiders have revealed. This marks a crucial progression in correcting oversight deficiencies that have burdened the nation's third-largest bank.

The closure of these notices comes as welcome news for Citigroup's CEO, Jane Fraser, who has been pursuing a strategy aimed at tackling risk management and control challenges. The lack of data integration following substantial acquisitions had previously led to regulatory censure.

Banks often have numerous unresolved regulatory issues, but these are typically kept confidential. Authorities expect a detailed plan from banks to resolve such matters, which are subject to regulatory review. Citi's resolution of these notices marks a significant compliance milestone.

(With inputs from agencies.)