Citigroup Faces Urgent Risk Management Demands: Regulatory Concerns Raised

U.S. Regulators Raise Concerns Over Citigroup’s Default Risk Measurement

U.S. regulators have expressed concerns over Citigroup’s measurement of default risk and have urged the bank to make immediate changes. The Federal Reserve sent three notices to Citigroup late last year, directing the bank to address how it measures the risk of default by counterparties in derivative transactions. These regulatory concerns come as Citigroup works to resolve long-standing deficiencies in risk management, data governance, and internal controls.