AIRLINK 86.21 Decreased By ▼ -0.99 (-1.14%)
BOP 4.97 Decreased By ▼ -0.05 (-1%)
CNERGY 4.08 Decreased By ▼ -0.01 (-0.24%)
DFML 37.22 Decreased By ▼ -0.68 (-1.79%)
DGKC 91.20 Decreased By ▼ -2.68 (-2.85%)
FCCL 22.99 Decreased By ▼ -0.78 (-3.28%)
FFBL 33.74 Increased By ▲ 1.07 (3.28%)
FFL 9.19 Decreased By ▼ -0.06 (-0.65%)
GGL 10.05 Increased By ▲ 0.02 (0.2%)
HASCOL 6.25 Decreased By ▼ -0.29 (-4.43%)
HBL 126.25 Increased By ▲ 4.33 (3.55%)
HUBC 158.29 Increased By ▲ 12.64 (8.68%)
HUMNL 11.08 Increased By ▲ 0.58 (5.52%)
KEL 4.64 Decreased By ▼ -0.10 (-2.11%)
KOSM 4.09 Decreased By ▼ -0.10 (-2.39%)
MLCF 38.25 Decreased By ▼ -0.55 (-1.42%)
OGDC 133.40 Decreased By ▼ -1.61 (-1.19%)
PAEL 25.40 Increased By ▲ 0.32 (1.28%)
PIBTL 6.22 Decreased By ▼ -0.05 (-0.8%)
PPL 119.25 Decreased By ▼ -0.43 (-0.36%)
PRL 24.58 Increased By ▲ 0.48 (1.99%)
PTC 12.28 Increased By ▲ 0.06 (0.49%)
SEARL 59.32 Decreased By ▼ -0.48 (-0.8%)
SNGP 65.60 Increased By ▲ 0.60 (0.92%)
SSGC 9.87 Decreased By ▼ -0.18 (-1.79%)
TELE 7.85 Decreased By ▼ -0.02 (-0.25%)
TPLP 9.49 Decreased By ▼ -0.25 (-2.57%)
TRG 63.80 Decreased By ▼ -0.50 (-0.78%)
UNITY 27.26 Increased By ▲ 0.21 (0.78%)
WTL 1.28 Decreased By ▼ -0.04 (-3.03%)
BR100 8,341 Increased By 31.1 (0.37%)
BR30 26,457 Increased By 506.8 (1.95%)
KSE100 78,810 Increased By 9 (0.01%)
KSE30 25,474 Increased By 35.6 (0.14%)
Markets

Citigroup is fined $4.5mn by US CFTC for deleting subpoenaed audio recordings

  • The US Commodity Futures Trading Commission said the Nov. 2018 deletion of 2.77 million audio files included recordings of traders subpoenaed in Dec. 2017 for a probe.
  • The civil fine was imposed against Citibank NA, Citigroup Energy Inc and Citigroup Global Markets Inc.
Published September 28, 2020

NEW YORK: A US regulator on Monday fined Citigroup Inc $4.5 million for deleting millions of audio files, including recordings it had subpoenaed, after failing to fix a known design flaw in its audio preservation system.

The US Commodity Futures Trading Commission said the Nov. 2018 deletion of 2.77 million audio files included recordings of traders subpoenaed in Dec. 2017 for a probe, which Citigroup had promised would be preserved.

Citigroup was accused of not following up on an employee's warning in 2014 that the configuration of its audio preservation system might create a "ticking time bomb effect" that could, and did, cause mass deletions of audio files.

The civil fine was imposed against Citibank NA, Citigroup Energy Inc and Citigroup Global Markets Inc for the New York-based bank's failure to maintain sufficient internal controls over its technology.

Citigroup did not admit or deny wrongdoing. A spokeswoman said the bank was pleased to settle.

According to the CFTC, the deleted recordings comprised 683,296 calls for 982 individual users, including recordings covered by its subpoena, and 2,087,789 recordings from speakerbox or "Hoot n' Holler" lines.

The case is the latest to highlight problems with technology systems at the third-largest US bank by assets.

Citigroup is battling separately in Manhattan federal court to recoup $900 million of its own money that it accidentally paid to lenders for the cosmetics company Revlon Inc.

Some hedge funds that lent money to Revlon and received payments from Citigroup have balked at repaying the bank, which blamed the incident on a clerical error.

Comments

Comments are closed.