| Ticker | Status | Jurisdiction | Filing Date | CP Start | CP End | CP Loss | Deadline |
|---|
| Ticker | Case Name | Status | CP Start | CP End | Deadline | Settlement Amt |
|---|
| Ticker | Name | Date | Analyst Firm | Up/Down | Target ($) | Rating Change | Rating Current |
|---|
British regulators have imposed a hefty fine on Citigroup Inc (NYSE:C) for its trading control failures.
What Happened: The UK’s banking and financial regulators have penalized Citigroup with a fine of over $78.5 million for its trading system and control shortcomings, reported Reuters.
The Prudential Regulation Authority stated that the issues at Citigroup Global Markets Limited (CGML) resulted in trading incidents, including a $1.4 billion execution on European exchanges due to an experienced trader’s incorrect input of an order in May 2022. The PRA attributed these incidents to deficiencies in CGML’s trading controls, particularly the absence of certain preventative hard blocks and the inappropriate calibration of other controls.
See Also: Top Trader Ditches Bitcoin For Altcoins, ‘Dogecoin Killer’ Shiba Inu’s Potential Breakout And More
The PRA fined Citigroup 33.88 million pounds for control failings between Apr. 1, 2018, and May. 31, 2022. The fine was reduced by 30% after Citigroup agreed to address the issue. The Financial Regulation Authority also fined Citigroup 27.76 million pounds after a similar investigation.
“Firms involved in trading must have effective controls in place in order to manage the risks involved,” said Sam Woods, CEO of the PRA and the Bank of England’s deputy governor for prudential regulation. “CGML failed to meet the standards we expect in this area, resulting in today's fine.”
The bank was “pleased to resolve this matter from more than two years ago, which arose from an individual error that was identified and corrected within minutes,” Citi spokesperson Victoria Durman said.
Why It Matters: This is one of the largest fines for control breaches in the UK since the global financial crisis in 2008-2009. The fine reflects the UK’s stringent stance on financial regulations and the consequences for non-compliance.
The regulators have been increasingly stringent on financial institutions’ trading controls, as seen in recent cases such as JP Morgan Chase‘s $350 million fine for deficient trade surveillance and Morgan Stanley‘s $249 million penalty for leaking information on trades by some of its top clients.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Posted In: C
