Senator Elizabeth Warren Pushes for Stricter Oversight on Citibank

U.S. Senator Elizabeth Warren (D-MA) urged Michael Hsu, acting head of the Office of the Comptroller of the Currency (OCC), on Friday to address Citibank's longstanding operational failures.

Senator Elizabeth Warren (D-Mass.) is calling for stricter oversight on Citibank, urging the acting head of the Office of the Comptroller of the Currency (OCC) to address the bank's persistent operational failures.

In a letter to Michael Hsu on Friday, Warren stated that Citibank, being the fourth largest bank in the U.S., has failed to reform and modernize its operations despite multiple enforcement actions by the OCC and the Federal Reserve.

“Citi has become ‘too-big-to-manage’ and committed a number of massive blunders in recent years. Despite these actions, the bank continues to falter,” wrote the senator, adding that the bank failed two Federal Reserve stress tests and mishandled its “living will.”

The senator noted that Citibank also failed to comply with a Federal Reserve rule that protects customer deposits, leading to repeated violations.

“Citi has failed to make sufficient progress, despite being provided four years to do so,” said Warren. “Following your own escalation framework, it may be time to break up Citi.”

Earlier this year, Hsu stated that breaking up Citibank is 'on the table' if the bank fails to improve its operational resilience.

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