By Elisa Martinuzzi, Lananh Nguyen and Tatiana Bautzer
LONDON/NEW YORK, Dec 17 (Reuters) – The U.S. Federal Reserve has told Citigroup that it has closed formal notices requiring the bank to fix trading risk management weaknesses, according to people with knowledge of the matter, a significant step in improving oversight and control deficiencies that have bogged down the third largest U.S. bank.
The Fed in late 2023 issued Citi notices to address three so-called Matters Requiring Immediate Attention, or MRIAs, identifying problems relating to how the bank calculates and manages the risks of its trading partners, Reuters previously reported. Those notices have now been terminated, according to the sources.
Officials for Citi and the Fed board, which supervises big banks, declined to comment.
The sources declined to be identified because supervisory matters are confidential.
(Reporting by Elisa Martinuzzi, Lananh Nguyen and Tatiana Bautzer; additional reporting by Tatiana Bautzer and Saeed Azhar in New York, and Pete Schroeder in Washington. Editing by Michelle Price)
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