Citigroup’s chief risk officer, Brad Hu, is departing the bank in the wake of a series of run-ins with regulators. He had served in the post for eight years.
Last month, federal regulators fined the bank $400m for failure to correct “longstanding deficiencies” in its risk and control systems, and it ordered the bank to upgrade its technology to fix the problems. The Federal Reserve found that Citi had “not taken prompt and effective actions to correct practices previously identified [in] compliance risk management, data quality management, and internal controls”.
In August, the bank mistakenly wired $900m to creditors of one of its clients, Revlon, many of whom refused to return the cash, sparking a high-profile legal fight. The bank has committed to spending an incremental $1bn on risk and control infrastructure this year
In a memo, Citi’s current chief executive, Mike Corbat, and his designated successor, Jane Fraser, wrote that “we respect [Mr Hu’s] decision to align his own timing with the CEO transition and his desire for the function to reset as Jane leads the management team . . . Brad has been an outstanding CRO”.
At the same time, Anand Selva, a 29-year Citi veteran and head of its US consumer operations since 2018, has been promoted to chief executive of the consumer bank globally. He will be the third executive in that post in just over a year.
The position is currently held by Ms Fraser, who replaced Stephen Bird in the post a year ago and is set to take the chief executive mantle from Mr Corbat in February.
The two announcements are first senior personnel announcements since Ms Fraser was announced as the next CEO of the company in September.
Citi has not yet hired a replacement for Mr Hu or a new head of the US consumer business, and will consider both internal and external candidates.