Citigroup has added a new section about its multi-year reorganization to its quarterly report filed with the U.S. Securities and Exchange Commission (SEC) in August. This update comes after inquiries from the market regulator.
The SEC’s letter, sent to Citigroup in June and disclosed on Wednesday, requested that the bank revise future filings. In July, U.S. bank regulators fined Citigroup $136 million for “insufficient progress” in addressing data management issues identified in 2020. The bank was also required to demonstrate sufficient efforts in meeting regulatory expectations.
In response to the SEC’s inquiry, Citigroup informed the commission in a July 10 letter—disclosed on Wednesday—that the new section would cover the bank’s broader transformation efforts, including steps to implement the October 7, 2020, consent orders from the Federal Reserve Board (FRB) and the Office of the Comptroller of the Currency (OCC).
Citigroup CEO Jane Fraser is spearheading a comprehensive overhaul aimed at improving the bank’s performance, reducing costs, and simplifying its vast operations. As part of this transformation, Citigroup plans to reduce its workforce by 20,000 over the next two years.
“Despite making good progress in simplifying our firm and addressing our consent orders, there are areas where we have not made progress quickly enough,” Fraser stated following the disclosure of the regulatory action.
The bank also included a section discussing the 2024 consent orders in its second-quarter report as part of efforts to enhance regulatory disclosures.