Fed says halt to Citi growth plans
(18 March 2005 – USA) The US Federal Reserve has put the brakes on Citigroup’s expansion plans, saying the bank needs to address a number of regulatory and compliance issues.
The Fed rebuked Citigroup following a number of regulatory issues in the bank’s operations in Europe, Japan and the US, highlighted by a US Senate report released last week which revealed that former Chilean dictator Augusto Pinochet held 63 accounts with Citigroup.
"The Board expects that management at all levels will devote the necessary attention to implementing its plan fully and effectively and will not undertake significant expansion during the implementation period," the Fed said.
"The Board believes it is important that management’s attention not be diverted from these efforts by the demands that mergers and acquisitions place on management resources," it said.
"The Board expects that management at all levels will devote the necessary attention to implementing its plan fully and effectively and will not undertake significant expansion during the implementation period," the Fed said.
"The Board believes it is important that management’s attention not be diverted from these efforts by the demands that mergers and acquisitions place on management resources," it said.
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