Citi Clears Fed's Trading Risk Notices

The U.S. Federal Reserve has closed formal notices concerning Citigroup's trading risk management weaknesses, marking a key advancement for the bank. Originally issued in late 2023, the Matters Requiring Immediate Attention (MRIAs) highlighted significant deficiencies. Both Citi and Fed representatives reserve comment on this supervisory matter.

The U.S. Federal Reserve has concluded its formal notices directed at Citigroup, addressing weaknesses in the bank's trading risk management. This move represents a crucial step forward in tackling oversight and control deficiencies for the nation's third-largest bank.

In late 2023, the Fed had issued Citigroup three Matters Requiring Immediate Attention (MRIAs), pointing out issues with the bank's risk calculations and its management of trading partners. Those notices have now been withdrawn, sources familiar with the situation disclosed, as reported by Reuters.

Citigroup and the Federal Reserve Board — responsible for supervising major banks — have declined to provide comments, citing the confidentiality of supervisory proceedings. The sources have also opted to remain anonymous for similar reasons.

(With inputs from agencies.)