NEW YORK, Oct 12 (Reuters) – Citigroup (C.N), opens new tab is seeking to rapidly resolve its efforts to address regulatory demands that have long dogged the third-largest US bank, in order to fully re-focus on growth, according to two people familiar with the matter.
The demands have lingered since 2020, leading to costly fines and distractions for Citi.
As recently as the summer, Citi was targeting submitting paperwork to regulators before the end of the year, or during the first quarter, one of the people told Reuters.
The bank has been aiming to present a comprehensive audit to the Federal Reserve and Office of the Comptroller of the Currency, so it will not hit any delays in approval, the person said. It will then wind down part of its remediation structure, the two sources said.
This would finally set the bank on a path to have consent orders lifted. The orders cover the regulatory demands to fix risk management, data governance and other problems.
Investors and analysts are laser focused on when Citi might shake off its regulatory burden, which could free up resources, boost the stock and become a key achievement for Chief Executive Jane Fraser.
Fraser has said Citi is about 90% done with the regulatory work required under the orders.