C - Citigroup Grapples With Urgent Regulatory Changes Amid Risk Measurement Concerns | Benzinga
U.S. regulators, including the Federal Reserve, have urged Citigroup Inc (NYSE:C) to immediately alter how it assesses default risks in derivative transactions.
The directives pose potential hurdles for CEO Jane Fraser as she endeavors to rejuvenate the bank’s fortunes.
The Federal Reserve issued three notices to Citi in the latter part of the previous year, specifically focusing on determining default risk by counterparties in derivative transactions.
Citi’s internal audit unit revealed additional work was necessary to address issues highlighted by regulators, as detailed in an email seen by Reuters.
The internal audit raised concerns ...