Citigroup (C) Faces Penalty of $78.4M for 2022 Flash Crash
CCiti(C) zacks.com·2024-05-23 23:56

Citigroup Inc. (C) has been fined 78.4millionbyapairofBritishregulatorsduetothebank’sdeficienciesinthesystemsandcontrols.TheseflawsledatradertomakeaninputtingerrorthatcausedaflashcrashinMay2022.Thepenaltyamountconsistedof£27.8millionfromtheFinancialConductAuthority(FCA)and£33.9millionfromtheBankofEngland’s(BoE)PrudentialRegulationAuthority(PRA).AccordingtotheFCA,atraderfromCitigroupmeanttosellabasketofequitiesworth78.4 million by a pair of British regulators due to the bank’s deficiencies in the systems and controls. These flaws led a trader to make an inputting error that caused a flash crash in May 2022. The penalty amount consisted of £27.8 million from the Financial Conduct Authority (FCA) and £33.9 million from the Bank of England’s (BoE) Prudential Regulation Authority (PRA). According to the FCA, a trader from Citigroup meant to sell a basket of equities worth 58 million but ...