Regulators prepare to reprimand Citigroup for failing to improve risk systems: WSJ

(Reuters) – Federal regulators are preparing to reprimand Citigroup Inc for failing to improve its risk-management systems, the Wall Street Journal reported https://on.wsj.com/3mvwLES on Monday.

The bank’s shares fell 3.3% after the news.

The expected move from the Office of the Comptroller of the Currency and the Federal Reserve accelerated planning for Chief Executive Officer Michael Corbat’s retirement, although regulators did not ask for him to step down, the Journal said, citing people familiar with the matter.

Citigroup and Federal regulators did not immediately respond to Reuters requests for comment.

Citigroup earlier this month named consumer banking head Jane Fraser as its next chief executive. Fraser will take over from Corbat in February.

(Reporting by Uday Sampath in Bengaluru; Editing by Aditya Soni)