Citigroup’s Still Got Some Risk Control Work To Do
You’d think, given its recent disastrous history with fat fingers and the brutal consequences flowing therefrom, Citigroup traders would be extra-special super-duper careful when inputting orders these days. Alas, it seems as though Jane Fraser’s typing lessons haven’t fully sunk in.
Trading was briefly suspended in several European markets on Monday morning, after leading share indices recorded sudden steep declines. One of the hardest hit was Sweden’s benchmark OMX 30 index, which fell by nearly 8%, but recouped most of the losses and ended the day 1.9% lower…. “This morning one of our traders made an error when inputting a transaction,” the New York-based bank said in a statement on Monday night. “Within minutes, we identified the error and corrected it.”
Citigroup has a history of untimely errors. In 2020, it was ordered by regulators to clean up systems meant to safeguard the bank and its clients and fined $400 million. It is spending billions of dollars to transform its technology and inner workings, a cost that has investors anxious. Chief Executive Jane Fraser has said it is the bank’s top priority to get it right.
Citigroup says trader made error behind ‘flash crash’ in Europe [Guardian]
Citigroup Sales Hit European Stock Markets With ‘Flash Crash’ [WSJ]
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