Summary
Citigroup Inc. has announced settlements with three key regulatory bodies: the U.K. Financial Conduct Authority (FCA), the U.S. Comptroller of the Currency (OCC), and the U.S. Commodity Futures Trading Commission (CFTC). These settlements resolve ongoing investigations into the company's foreign exchange (forex) business. The total payment for these settlements amounts to approximately $1.018 billion, with specific amounts allocated to each regulator ($358 million to FCA, $350 million to OCC, and $310 million to CFTC). Importantly, Citigroup has confirmed that these settlement costs are fully covered by the company's existing legal reserves as of the third quarter of 2014. While these settlements address current investigations, investors should note that several other regulatory agencies and enforcement bodies are still conducting inquiries into Citigroup's forex operations, as previously disclosed. The company has also committed to implementing further enhancements to its control framework for its foreign exchange business as part of these agreements.
Key Highlights
- 1Citigroup Inc. reached settlements with the U.K. FCA, U.S. OCC, and U.S. CFTC regarding its foreign exchange business.
- 2Total settlement payment amounts to approximately $1.018 billion.
- 3Payments are allocated as $358 million to FCA, $350 million to OCC, and $310 million to CFTC.
- 4The settlement costs are covered by Citigroup's existing legal reserves from Q3 2014.
- 5Citigroup agreed to enhance its control framework for its foreign exchange business.
- 6Ongoing investigations by several other regulatory agencies and enforcement bodies persist.
- 7This filing does not represent a resolution of all investigations into the forex business.