Federal Reserve ends supervisory notices to Citi, sources say
The Federal Reserve has terminated supervisory notices that required Citi to improve its risk controls, people familiar with the matter told Reuters. The move removes formal written demands that the bank take steps to strengthen its governance and risk-management practices, according to the sources.
What this means
- Regulatory relief: Ending the notices signals that the Fed is satisfied with the progress Citi has made on certain risk and control issues.
- Ongoing oversight: Termination of notices does not mean regulators have stopped supervising the bank; routine oversight and possible informal expectations usually continue.
- Reputation and strategy: The change may give Citi more flexibility in planning and capital allocation, while also easing a public regulatory overhang.
Why it matters
Supervisory notices are a formal tool regulators use to compel banks to fix weaknesses. When they are issued, firms must report back with remediation plans and often face stricter scrutiny. Having those notices ended suggests the Fed judged Citi’s remediation credible enough to lift that formal step.
What comes next
Expect continued monitoring. Even without formal notices, regulators typically keep pressure on large banks to maintain strong controls and transparent governance. For Citi, the immediate effect is regulatory relief; the longer-term impact depends on sustained improvement in risk practices.
Details in this report were provided by people familiar with the situation.