Citigroup Inc. has launched “significant remediation projects” to bolster its risk management controls, infrastructure, and governance as a result of two consent orders from federal banking regulators that found major shortcomings in Citi’s enterprise-wide risk management, compliance risk management, data governance, and internal controls. The Federal Reserve Board and the Office of the Comptroller of… Read More >>
Citi Fined for Allegedly Inadequate Background Checks
The Financial Industry Regulatory Authority, better known as FINRA, reports that it has fined Citigroup Global Markets Inc. $1.25 million for “failing to conduct timely or adequate background checks on approximately 10,400 non-registered associated persons spanning a seven-year period.” Citigroup Global Markets (CGMI) characterizes itself as a provider of “products and financing solutions for corporations,… Read More >>
FINRA Fines Cetera Firm for Alleged Supervisory Failures
The Financial Industry Regulatory Authority (FINRA) reports that it has fined Summit Brokerage Services, Inc., an affiliate of the Cetera Financial Group, $880,000 “for supervisory failures, including approximately $558,000 in restitution to customers whose accounts were excessively traded by a former registered representative of the firm who was previously barred by FINRA.” According to FINRA,… Read More >>
FINRA Fines J.P. Morgan Securities for Inadequate Fingerprinting
The Financial Industry Regulatory Authority (FINRA) reports that it has fined J.P. Morgan Securities $1.25 million for allegedly “failing to conduct timely or adequate background checks on approximately 8,600, or 95 percent, of its non-registered associated persons from January 2009 through May 2017.” J.P. Morgan Securities “neither admitted nor denied the charges, but consented to… Read More >>
BNPP Pays $246M Fine, Agrees to FX Reforms
The Federal Reserve Board reports levying a $246 million-plus fine against Paris-based BNP Paribas S.A. and “certain of its U.S. subsidiaries” for what it calls “unsafe and unsound practices” in the foreign exchange (FX) markets. Fed officials allege that there were oversight deficiencies via the “the world’s seventh-largest financial services company by revenue [$126.2 billion].”… Read More >>
Will Steven A. Cohen Return to the Fray in 2018?
Former hedge fund heavyweight Steven A. Cohen, who has just settled with the SEC, could return to managing other people’s money again in 2018. However, an internal memo that he penned and which was obtained by FTF News, indicates that Cohen may not automatically return to the fray. In the memo, Cohen acknowledges that he… Read More >>
Deutsche Bank’s $55M Settlement Could Boost Transparency
Deutsche Bank settled charges of misstating the value of a derivatives portfolio with the SEC to the tune of $55 million, the latest in a string of regulatory penalties to hit the bank that could potentially provide another nail in the coffin for the opaque processes common at major banks before the Great Recession, industry… Read More >>
Deutsche Bank’s $2.5B Fine Puts Focus Back on Compliance
Despite revealing massive fraud at one of the world’s largest financial institutions, Deutsche Bank’s recent $2.5 billion settlement with regulations could have a silver lining, industry observers say. Deutsche Bank’s fine came at the end of a seven-year probe into manipulation of the London Interbank Offered Rate (Libor) by its traders and exposed widespread fraud… Read More >>
