Investing.com | Editor Rachael Rajan
Published Oct 26, 2023 02:03PM ET
The Federal Reserve has terminated a cease and desist order against Citigroup Inc (NYSE:C). that had been in place since 2015. The order was related to forex trading malpractices, following an admission by Citigroup’s unit of a criminal violation of U.S antitrust laws. The violation involved a scheme aimed at suppressing competition in the trading of the EUR/USD currency pair, including manipulation of WM/R and ECB benchmark fixes.
In response to the Federal Reserve’s demand for enhanced risk management, Citigroup initiated a comprehensive audit and compliance program across the company. This move was part of the bank’s efforts to address the issues raised by the Federal Reserve.
During an investigation into foreign exchange practices, Citigroup was handed the heftiest fine among five major banks involved in the probe. The bank paid $925 million to the Justice Department and an additional $342 million to the Federal Reserve, totaling a substantial $1.267 billion in penalties.
Subsequent to these developments, Citigroup’s stock experienced a slight increase, appreciating by 1%. As of now, there has been no immediate response from a spokesperson for Citigroup regarding the closure of the cease and desist order.
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Written By: Investing.com
