Brad Hu, Citigroup's Chief Risk Officer, is leaving the bank after a series of run-ins with regulators. He had served on the post for eight years.
Last month, federal regulators fined the bank $ 400 million for failing to fix "long-standing flaws" in its risk and control systems and ordered the bank to upgrade its technology to address the issues to fix. The Federal Reserve noted that Citi "did not take immediate and effective action to correct the previously identified compliance risk management, data quality management and internal controls."
In August, the bank mistakenly transferred $ 900 million to the creditors of one of its clients, Revlon, many of whom refused to return the money, sparking a high profile legal battle. The bank has committed to spending an additional $ 1 billion this year on risk and control infrastructure
In a memo, Citi's current CEO Mike Corbat and his designated successor, Jane Fraser, wrote that “We respect [Mr. Hu ]’s decision to adjust his own timing to reflect the CEO’s change and his desire to have the function reset becomes like Jane she leads the management team. . . Brad was an excellent CRO. "
At the same time, Anand Selva, a 29-year-old Citi veteran and head of US consumer operations since 2018, has been promoted to chief executive of the global consumer bank. He will be the third manager in this position in just over a year.
The position is currently held by Ms. Fraser, who replaced Stephen Bird a year ago and who will take over as General Manager from Mr. Corbat in February.
The two announcements are the first executive announcements since Ms. Fraser was announced as the company's next CEO in September.
Citi has not yet hired a replacement for Mr. Hu or a new head of the US consumer business and will be considering both internal and external candidates.