Citigroup 'close to regulatory deal'

16 July 2009

Citigroup is close to reaching a new deal with one of its main regulators, it has been suggested.

According to the Financial Times, the financial conglomerate is nearing an agreement with the Federal Deposit Insurance Corporation that would see scrutiny of the bank increase.

The newspaper, which cited "people close to the situation" as its source, said that issues such as financial, managerial and governance problems would have to be resolved under the terms of the new agreement.

Citigroup would also have to strengthen its board, improve its expenses management system and provide more information on capital and liquidity.

It is believed that discussions between the two parties have been ongoing in recent weeks and that an agreement could be reached in the near future.

Citigroup recently announced a number of changes to its senior management structure, with chief executive officer Vikram Pandit noting that the firm is focusing on "rationalizing" its Citi Holdings operations.

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