Welcome to Extreme Investor Network, your go-to source for all things finance and investing. Today, we are diving into the recent news of British regulators slapping U.S. investment bank Citi with a hefty £61.6 million ($79 million) in fines for failings in its trading systems and controls.
The fines were handed down by the Prudential Regulation Authority and the Financial Conduct Authority, following an investigation into Citi’s activities between April 1, 2018, and May 31, 2022. It was found that Citi did not meet the standards expected in terms of its trading controls, leading to various incidents, including a $1.4 billion trading blunder on European exchanges.
According to Sam Woods, deputy governor for prudential regulation, and the chief executive officer of the PRA, “Firms involved in trading must have effective controls in place in order to manage the risks involved. CGML [Citigroup Global Markets Limited] failed to meet the standards we expect in this area, resulting in today’s fine.”
Citi qualified for a 30% reduction in the penalty amount after agreeing to resolve the matter. In response to the fines, a Citi spokesperson stated that the bank was pleased to have resolved the issue from over two years ago and had taken immediate steps to strengthen its systems and controls to ensure full regulatory compliance.
This case serves as a reminder of the importance of robust trading controls and risk management practices in the finance industry. Stay tuned to Extreme Investor Network for more updates and insights on the latest developments in finance and investing.
Source: CNBC