Citibank Fined $30 Million in Real-Estate Holding Rules Case -- 2nd Update
October 11 2019 - 6:05PM
Dow Jones News
By Allison Prang
A U.S. banking regulator has fined an arm of Citigroup Inc. $30
million, saying it violated holding period regulations on
foreclosed real estate.
The U.S. Treasury Department's Office of the Comptroller of the
Currency said Citibank in Sioux Falls, S.D., repeatedly violated
the other real-estate owned statutory holding period because of
"deficient processes and controls." Other real-estate owned refers
to property that banks take following foreclosures or other
borrower defaults. Citibank violated rules that set a maximum limit
on how long banks are allowed to own a property.
The bank doesn't admit or deny wrongdoing, the OCC said in its
order. The regulator said the bank has paid the fine.
"Since identifying the issue, we have strengthened controls,
processes and procedures to ensure the timely disposition of these
assets," a bank spokesman said in an emailed statement.
Citibank lacked the necessary policies and procedures to monitor
its compliance with rules that govern how long banks can hold on to
the property, according to the OCC order.
The OCC's consent order states that the bank violated the
holding period more than 200 times over a two-year period that
ended this past August. The bank, since 2015, has committed
multiple times to fix its deficiencies, the OCC said.
The OCC continues to monitor the bank's efforts to strengthen
its internal controls, it said.
--Kristin Broughton contributed to this article.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
October 11, 2019 17:50 ET (21:50 GMT)
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