How’s This For “Forced Transparency”? Citi Adds New Section To Its QRS On Reorganization Efforts – Following SEC Inquiries – And Big Fines For Failing To Make Progress On Internal Controls

Our thoughts and prayers continue to go out to Citi CEO Jane Fraser as she struggles to rein-in the wild and reckless horse that Citi had become after more than a decade of ‘deferred maintenance’ on its key operating systems and their internal controls.

But OUCH! As reported by Reuters in August, after being fined $136 million by bank regulators in June for making “insufficient progress” fixing data management issues identified in 2020 - that required the bank to demonstrate that it was making sufficient efforts - the SEC raised issues of inadequate disclosures to investors. Immediately thereafter, Citi’s August Quarterly Report was enhanced with a new, and continuing section, to describe progress going forward. We think this will add much needed focus – and lead to far more aggressive action plans to finally rein-in that wild horse and deliver returns to shareholders that are better in line with industry norms.