- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-05-22T18:30:00
Two U.K. financial regulators fined a London-based Citigroup subsidiary a total of approximately 61.7 million pounds (U.S. $78.6 million) for control failures related to its trading system.
The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) announced the penalties Wednesday against Citigroup Global Markets Ltd. (CGML), an investment firm subsidiary of Citigroup.
In a press release, the FCA said it levied its fine of about £27.8 million (U.S. $35.4 million) because failures in the firm’s systems and controls allowed a trader’s erroneous order to enable $1.4 billion in equities improperly sold on the European market on one day in May 2022. The PRA, which levied a penalty of about £33.9 million (U.S. $43.2 million), said in a press release its investigation into the trading order error found deficiencies in the firm’s trading system and controls from April 2018 to May 2022.
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The U.K. Financial Conduct Authority fined the London branch of Australian-based Macquarie Bank Limited more than 13 million pounds (U.S. $16.3 million) for “serious control failures” that allowed a trader to conceal hundreds of fictitious trades over a 20-month period.
Singapore-based commodity trading company Trafigura will pay $55 million to the Commodity Futures Trading Commission to settle charges related to fraud, manipulation, and impeding whistleblower communications with the agency.
The U.K. Financial Conduct Authority fined HSBC nearly £6.3 million (U.S. $8 million) for failing to properly consider the financial position of customers who missed payments.
USAA Federal Savings Bank has been hit with its third cease and desist order from the Treasury Department’s Office of the Comptroller of the Currency in the past five years for failing to correct unsafe and unsound banking practices.
Becton Dickinson medical device company will pay $175 million for “repeatedly” misleading investors about its Alaris infusion pump, a product the company knew was flawed and was sold without the required patient-safety approvals, the Securities and Exchange Commission said.
The Securities and Exchange Commission charged bankrupt fashion retailer Express with failing to disclose nearly $1 million in perks to a former chief executive, but did not levy a financial penalty thanks to its cooperation, the SEC said.
