The good news of the regulatory approach is that the obvious failures needed to be fixed and the regulatory push led to the right result.
It is good news that Citigroup has worked to improve its compliance controls and systems leading to the Fed's approval letter.
As we see in Australia, there is a way to go and, hopefully, they will not slow up with this letter.
Onésimo Alvarez-Moro
See article:
One of the clouds hanging over Citigroup was lifted yesterday when the world's largest financial services company revealed that the Federal Reserve had removed the ban on it making large acquisitions.
The New York Fed, Citigroup's lead regulator, said in a letter to the company that it had dropped the ban because of the "significant progress" it had made in improving its internal controls. The Fed imposed the restriction a year ago following Citigroup's string of regulatory problems, including the forced closure of its private bank in Japan and the furore in Europe over controversial government bond trades.
Chuck Prince, chief executive, said the move reflected the "cumulative effect" of moves taken during the past year, including his introduction of a "five-point plan" to improve Citigroup's compliance culture.
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