Citi Hit With New Fed Demands to Fix Risk Controls, Reuters Says

The Federal Reserve slapped Citigroup Inc. with a series of demands to change the way it measures the risk of its trading partners, according to a Reuters report, the latest blow to Chief Executive Officer Jane Fraser’s turnaround effort.

Regulators sent the bank three notices last year directing it to address the matter in coming months, Reuters said, citing a source with direct knowledge of the matter. Separately, Citigroup’s auditors have found that the bank’s plan to improve internal oversight is lacking, according to the report.

CEO Jane Fraser

Photographer: Al Drago/Bloomberg

Fraser has been trying to restore investors’ faith in the company ...