The ranking member of the U.S. Senate Committee on Banking, Housing and Urban Affairs, Sen. Elizabeth Warren, sent a letter to Citigroup Chief Executive Jane Fraser questioning whether any major acquisition by Citi could comply with merger laws and warning that further expansion could heighten risks to consumers and U.S. financial stability. The letter follows a Bloomberg report that Citi executives believed regulators might approve a large transaction, even though Warren argued an acquisition of the type reported would likely not satisfy the Bank Merger Act and Bank Holding Company Act. Warren framed her concerns around three statutory factors regulators must assess. First, she argued that a material acquisition would worsen systemic risk, citing Citi's growth from USD 559 billion in assets in 1995 to USD 2.1 trillion in 2007 and its USD 476.2 billion in taxpayer-funded support during the 2008 financial crisis. Second, she said Citi's managerial resources are already strained, pointing to the bank's August 2020 mistaken USD 900 million payment to Revlon creditors. Third, she argued Citi's record raises questions about public benefit and community needs, citing a 2023 Consumer Financial Protection Bureau case over discrimination against Armenian American credit card applicants that resulted in a penalty of more than USD 24 million, as well as 2016 CFPB actions over debt sales and collection practices that ordered nearly USD 5 million in consumer relief and a USD 3 million penalty. Warren asked Citi to answer her questions by July 22, 2026. She also urged the bank to stop any ongoing expansion discussions and instead consider selling business lines to reduce its size and simplify its structure.

Original source Back to tracker