The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Citi should benefit from regulators forcing a risk fix

Consent orders provide a perfect excuse to shareholders for spending on the better risk management and controls that Citi’s businesses need.

In 2021, Citi’s top management has focused on complying with regulatory consent orders to make its risk management systems and data controls fit for purpose.

Failure to address shortcomings that regulators had consistently warned about led to the departure of chief executive Michael Corbat in February. His replacement, Jane Fraser, may have found appetite and capital to invest in growing revenues: hiring 500 wealth managers mainly in Asia, for example, and 200 investment bankers to profit from the boom in M&A. But she makes it clear that nothing is more important than the successful execution of what the bank calls its transformation programme.

“It is our number one priority,” Fraser told analysts on the third-quarter earnings call. “We want to make sure the bank is modernized in its risk and control environment.”

Some 3,000 people are working on the consent orders, which also span data management, finance and compliance. This effort boosted group expenses by 3% during the first nine months of 2021 compared with 2020, with business investments contributing another 2% to cost growth.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree