Citigroup (C) Shares Rise After Settlement with Bourse de Montreal

Citigroup Inc. (C) shares are trading higher today after the bank agreed to settle claims with the Bourse de Montreal for failing to report large options contract positions. The exchange pointed out that Citigroup lacked a system to ensure employee compliance with reporting rules, as reported by Reuters. As part of the settlement, Citigroup will pay a $138,000 fine and $10,600 in related costs. This news comes after Citigroup was fined $135.6 million by the Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) for failure to comply with a 2020 enforcement action.

The penalties imposed on Citigroup by the Federal Reserve and OCC are part of a larger effort to address ongoing issues with the bank’s data quality management and risk controls. Despite these challenges, Citigroup reported a second-quarter FY24 revenue growth of 4% year-over-year to $20.14 billion, exceeding analyst expectations. Additionally, its earnings per share of $1.52 beat the consensus estimate of $1.39. Citigroup stock has seen a significant increase of over 36% in the last 12 months, attracting investors who can access the stock through funds like First Trust Nasdaq Bank ETF (FTXO) and Opal Dividend Income ETF (DIVZ).

While Citigroup’s stock is currently trading down 0.15% at $64.79 in premarket activity, the overall sentiment remains neutral. Investors are advised to stay informed about developments related to Citigroup and monitor analyst insights and news that may impact the stock’s performance.