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Citi close to secret deal with regulator

Citigroup is close to a secret agreement with one of its main regulators that will increase scrutiny of the US bank and force it to fix financial, managerial and governance issues.

People close to the situation said the deal had been discussed in recent weeks amid increased pressure on Citi from the Federal Deposit Insurance Corporation, the regulator, and could be finalised soon.

The proposed agreement requires that Citi, among other things, strengthen its board and governance, improves asset quality, manages expenses and provides more information to regulators on its capital and liquidity, these people added.

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