Citigroup Chief Risk Officer to Depart
November 02 2020 - 6:56PM
Dow Jones News
By Dylan Tokar
Citigroup Inc.'s chief risk officer will depart as the bank
works to overhaul its risk-management systems, the nation's
third-largest bank said Monday.
Brad Hu, a 12-year veteran of Citigroup, will remain in his
position until the end of the year to ensure a smooth transition,
according to an internal memo by Chief Executive Michael Corbat and
Jane Fraser, the firm's president and head of global consumer
banking.
News of Mr. Hu's departure arrives a month after federal
financial regulators fined Citigroup $400 million and ordered the
bank to fix its risk-management systems, citing "significant
ongoing deficiencies."
The decision to leave was Mr. Hu's, according to Citigroup. Mr.
Hu, through a Citigroup spokeswoman, declined to comment.
Ms. Fraser is set to take over as CEO of Citigroup after Mr.
Corbat retires in February.
"We respect his decision to align his own timing with the [chief
executive officer] transition and his desire for the function to
reset as Jane leads the management team on the firm-wide
transformation that lies ahead," Mr. Corbat and Ms. Fraser said in
the memo, which was viewed by The Wall Street Journal.
Ms. Fraser's role as head of global consumer banking will be
filled by one of her top lieutenants, Anand Selva, according to the
memo.
Citigroup said it will conduct a search for its next chief risk
officer and that it will consider both internal and external
candidates.
The bank praised Mr. Hu's accomplishments as chief risk officer,
saying he helped reduce Citigroup's risk profile and guide the firm
through geopolitical and economic disruptions. Mr. Hu also helped
the bank respond to emerging risk areas such as climate change and
cybersecurity, Citigroup said.
The Federal Reserve and the Office of the Comptroller of the
Currency in October said Citigroup failed in various areas of
internal controls and risk management, including data management,
regulatory reporting and capital planning.
Longstanding concerns about Citigroup's internal risk systems
were stoked when the firm inadvertently made a $900 million payment
to creditors of cosmetics company Revlon Inc.
The OCC and the Fed have ordered Citigroup to form a new board
committee to oversee the risk overhaul.
Write to Dylan Tokar at dylan.tokar@wsj.com
(END) Dow Jones Newswires
November 02, 2020 18:41 ET (23:41 GMT)
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