Citigroup Sanctioned by Fed for Failures in Bank’s Risk Controls

Photographer: Justin Chin/Bloomberg
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Citigroup Inc. has agreed to an order from the Federal Reserve to fix several longstanding problems with its risk controls, according to a statement released Wednesday.

The Fed’s cease-and-desist order -- issued alongside a related sanction from the Office of the Comptroller of the Currency -- directs the lender to “correct practices previously identified by the Board in the areas of compliance risk management, data quality management, and internal controls.”