Citi adds three directors to board in response to regulatory probe

Daily news headlines

NEW YORK - US bank Citigroup has expanded its board to 17, adding three new members, and has announced corporate governance enhancements, to appease US regulators who earlier this month pressured the bank into signing a secret regulatory deal to repair its governance.

The three external hires are Diana Taylor, Timothy Collins and Robert Joss. Internal appointments announced included a new non-executive chair of Citibank NA, head of the oversight committee for Citi Holdings and chair of the bank's internal audit and risk management committee.

Earlier in July it was reported that Citi was close to a secret deal with the Federal Deposit Insurance Corporation (FDIC) to fix issues with its board, governance, asset quality, expenses management, and capital and liquidity disclosures.

Taylor is a former superintendent of banks for the New York State Banking Department and serves as managing director of fund manager Wolfensohn Capital. Collins is chief executive officer of investment firm Ripplewood Holdings, and Joss serves as dean and business professor at Stanford University.

The Financial Times reported earlier this month that a governance deal was being negotiated with the FDIC because the regulator was frustrated at the bank's losses, the slow speed with which Citi disposed of its toxic assets, and a shortage of commercial banking experience at the top.

The bank says it has appointed Jerry Grundhofer as its non-executive chairman of the board of Citibank NA, its retail-banking arm. He will also chair the bank's audit and risk management committee.

The US government agreed a 36% equity stake in Citi in February, by converting $25 billion in government aid into common shares within the bank, while Treasury stress-testing exercises in May found the bank required $5.5 billion more capital to satisfy its stress requirements.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Investment banks: the future of risk control

This survey report explores the current state of risk controls in investment banks, the challenges of effective engagement across the three lines of defence, and the opportunity to develop a more dynamic approach to first-line risk control

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here