Citi seeks faster removal of long-standing US regulatory orders

what happened

Citigroup is seeking to speed up efforts to address regulatory demands that have weighed on the third-largest US bank since 2020, Reuters reported, citing two people familiar with the matter. The requirements have resulted in costly fines and diverted management attention. As recently as this summer, the bank was aiming to submit paperwork by year-end or during the first quarter, one source told the news agency.

Citi is preparing a comprehensive audit for the Federal Reserve and the Office of the Comptroller of the Currency, hoping to avoid delays in the approval process. It would then wind down part of the structure responsible for remediation. That could put the bank on a path toward lifting consent orders covering risk management, data governance and other issues. Chief Executive Jane Fraser has said Citi is about 90% finished with the work required under the orders.

Reuters reported that Citi had previously hoped to complete the process by the end of 2026, but encountered a brief audit-related delay over the summer. The bank said any decision to lift the orders rests solely with regulators. Citi spent $3.3 billion on transformation work last year. Its wealth division returned 12.6% in the first half of the year against a long-term target of 20%, while analysts said it needs faster growth in investment assets and fee income.

why it matters

Lifting the orders could free resources for Citi’s growth plans and mark a significant milestone for Fraser’s restructuring. Investors are also watching whether the bank can expand its wealth-management and retail operations, including through branches or an acquisition, although regulators scrutinize such moves more closely while the orders remain in place.

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