Senator Elizabeth Warren has called for strong action from regulators, urging the acting head of the Office of the Comptroller of the Currency (OCC) to address Citibank’s continued failures in its operations. Warren has said Citibank may be “too big to manage,” citing years of management failures and failed reforms despite the penalties. The letter suggests that breaking up the bank may be a necessary step.

Warren pushes for tighter oversight of Citibank

U.S. Senator Elizabeth Warren (D-MA) urged Michael Hsu, acting director of the Office of the Comptroller of the Currency (OCC), on Friday to address longstanding failures in Citibank's operations.

In a letter to Hsu, Warren warned that Citibank “has become ‘too big to manage’ and has made a number of serious mistakes in recent years,” adding that despite multiple regulatory actions, the bank has continued to decline. She criticized the OCC for not taking decisive action and suggested that breaking up the bank might be necessary under Hsu’s own regulatory framework. The senator wrote:

Citi, the fourth-largest bank in the United States, has failed to reform and modernize its operations despite multiple enforcement actions from the OCC and the Federal Reserve.

She explained that the bank has struggled with a number of regulatory and operational crises, including failing two Federal Reserve stress tests and mishandling a “living will,” a document required to manage bankruptcy. Warren highlighted other notable failures, such as repeated violations of a Federal Reserve rule designed to protect customer deposits. Despite these repeated problems, regulators have imposed penalties, but Citi has still failed to meet expectations.

Warren highlighted the lack of meaningful progress over the years. She pointed to Hsu’s escalating framework, which included warnings, enforcement actions, and the breakup of banks that repeatedly failed. The lawmaker wrote:

The evidence is clear: Citi hasn't made enough progress, despite being given a four-year extension to do so. By your own escalation framework, it might be time to break up Citi.

Do you agree with Senator Elizabeth Warren's assertion that Citibank's operational failures justify breaking it up? Let us know in the comments below.
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