US Senator Elizabeth Warren has called on the Office of the Comptroller of the Currency (OCC) to impose growth restrictions on Citi due to ongoing issues with the bank's risk management and internal controls.
In a letter to Acting Comptroller of the Currency Michael Hsu, Warren referenced a January 2023 speech in which Hsu outlined a four-step framework for escalating supervisory action against large banks. In that speech, Hsu warned that banks that are found to have grown "too big to manage" (or "TBTM"), as evidenced by repeated risk management and control failures, risk facing severe enforcement action up to and including being broken up through forced divestiture and simplification.
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