Citigroup hurt by negligent auditing on failed stress test: Financial Times

April 11, 2014 Leave a comment

Citigroup hurt by negligent auditing on failed stress test: Financial Times

Fri, Mar 28 2014

(Reuters) – Weaknesses in auditing led to Citigroup Inc failing the U.S. Federal Reserve capital assessments, fueling fears that there is negligence in controls at the U.S. bank, the Financial Times reported on Friday citing executives and others sources familiar with the matter.

Executives at Citi are promising better auditing and anti-money laundering processes and will try to allay the concerns that led regulators to veto the bank’s plan to return more cash to shareholders, the newspaper reported on its website. (r.reuters.com/cer97v)

There is also tension brewing among the bank’s management, the business daily said citing company sources.

Citigroup’s Chief Executive Officer Mike Corbat had shown himself to be “overconfident” that he had repaired the bank’s rickety relationship with regulators and had “mistaken a ‘not bad’ relationship for a good relationship,” the business daily reported citing a senior executive.

Citigroup investors will likely have to wait until at least 2015 to receive an increase in dividends or stock buybacks after the Federal Reserve rejected its plan to return more capital to shareholders, the Wall Street Journal reported. (r.reuters.com/der97v)

A Citigroup representative was not immediately available to comment.

 

 

Filed under Macro Trends

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment