Senator Elizabeth Warren is calling for stricter oversight on Citibank, urging the acting head of the Office of the Comptroller of the Currency (OCC) to take bold action in addressing the bank’s persistent operational failures. Warren raised concerns that Citibank may have become “too-big-to-manage,” pointing to a history of regulatory missteps and failed reforms despite ongoing penalties. In a letter to OCC’s Michael Hsu, Warren suggested that breaking up the bank could be a necessary step to ensure accountability and stability in the financial sector.
Warren Urges Regulatory Action on Citibank
Senator Elizabeth Warren of Massachusetts is pushing for stricter oversight on Citibank, one of the largest banks in the United States. In a letter addressed to Michael Hsu, the acting head of OCC, Warren highlighted Citibank’s persistent operational failures and regulatory violations.
Warren expressed concern that Citibank’s size and complexity have made it difficult to manage effectively, leading to a series of high-profile blunders in recent years. Despite facing enforcement actions from both the OCC and the Federal Reserve, the bank has failed to implement necessary reforms and modernize its operations. Warren criticized the lack of decisive action from regulators and suggested that breaking up Citibank may be the only way to address its ongoing issues. She stated:
Citibank, as the fourth largest bank in the U.S., has repeatedly failed to address its operational shortcomings despite facing regulatory scrutiny and penalties. It is clear that more drastic measures are needed to hold the bank accountable.
The senator highlighted Citibank’s failure to pass Federal Reserve stress tests, mismanagement of its “living will,” and violations of customer deposit protection rules as evidence of the bank’s systemic problems. Despite facing penalties and enforcement actions, Citibank has continued to struggle with regulatory compliance and operational efficiency.
Warren pointed to Hsu’s own regulatory framework, which includes escalating consequences for banks that fail to address their issues. She emphasized that Citibank’s lack of progress over the years warrants serious consideration of breaking up the bank as a last resort. Warren wrote:
It is evident that Citibank has not made sufficient progress in rectifying its operational failures, despite years of regulatory intervention. In accordance with your escalation framework, it may be time to explore the possibility of breaking up Citibank to protect consumers and the financial system.