Where Will Citigroup Be in 1 Year?
It has been an interesting few months for Citigroup (NYSE: C). On Sept. 10, the fourth-largest bank in America named Jane Fraser as its new CEO, making her the first woman to lead one of the nation's major banks. Fraser, a Citigroup executive for the past 16 years, will replace Michael Corbat, who has served as chief executive for eight years. This bold move was long overdue, and it was met with widespread approval throughout the industry.
That good news followed some bad news, as Citigroup was embroiled in a legal and financial entanglement involving $900 million that a Citigroup employee mistakenly wired to companies that provided loans to Revlon for an acquisition. Citigroup then sued the lenders to get the money back, attributing it to a clerical error. The case is going to court in November.
That was followed by more bad news, as the Federal Reserve Board and Office of the Comptroller of the Currency issued separate consent orders against Citigroup on Oct. 7. They assessed a $400 million penalty on Citibank, the company's banking arm, for "unsafe or unsound banking practices for its long-standing failure to establish effective risk management and data governance programs and internal controls."
Source Fool.com
