Citigroup Inc. (C)
Citi fined $78 million after a European trader's fat-finger trade caused a flash crash in stocks
A trading mistake at Citigroup in 2022 has led to a $78 million fine against the bank. The "fat-finger" trade caused a brief flash crash in European stocks in May 2022.
A Citi trader intending to sell $58 million of shares ended up selling $1.4 billion. Now the bank has been fined.
Trading incidents including one where Citigroup executed $1.4 billion of sell orders when intending to sell $58 million of shares led British regulators on Tuesday to fine the bank over trading controls.
Citigroup counting £61.6m cost of fat finger error
Citigroup is counting the cost of a fat-finger trade that led to a flash crash in European stocks after being fined £61.6 million by the UK regulators. The American bank's systems were poorly designed and ultimately ineffective as chaos was unleashed after a London-based Citi trader moved to sell a huge basket of equities in error on May 2, 2022.
Citigroup counting £61.6m cost of fat finger error
Citigroup is counting the cost of a fat-finger trade that led to a flash crash in European stocks after being fined £61.6 million by the UK regulators. The American bank's systems were poorly designed and ultimately ineffective as chaos was unleashed after a London-based Citi trader moved to sell a huge basket of equities in error on May 2, 2022.
UK watchdogs fine Citi trading arm £60m after trader's fat finger error
Citigroup Inc's (NYSE:C) Global Markets arm (CGML) has been fined over £60 million by City of London regulators after its slow reaction to a mistake by one of its traders led to US$1.4 billion of equities "being sold in European markets when they should not have been" and a sharp drop in some European market indices. The Financial Conduct Authority said its fine of £40 million, reduced to just under £28 million due to early payment, was for "failures in systems and controls" over the actions of a CGML trader in May 2022.
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Citigroup (NYSE: C ) is a financial giant you can bank on, so to speak, but the company will face challenges in 2024. The Federal Reserve's interest-rate policy will undoubtedly have a major impact on Citigroup's top and bottom lines.
