Citi is still out there, hiring MDs to work on its consent order
It's been four years since Citi received a $400m fine and two consent orders demanding that it sharpen up the internal oversight of its operations. Last year, the bank had somewhere in the region of 12,000 people trying to fix things. Now it has one more.
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Citi has recruited Andreas Noetzel, a longstanding Bank of America managing director who was working on the bank's global markets data strategy. At Citi, Noetzel says he'll be head of risk data governance and working on consent order remediation.
Good luck to him. Citi's transformation is an unwieldy beast with data governance and the consent order at its heart. Citi CFO Mark Mason said last July that the bank has 11,000 regulatory reports and that one alone has 750,000 lines of data. The bank is spending $250m+ on the transformation effort, and yet was fined another $136m for failing to sort out the problem last year.
Noetzl may not last. People on Citi's data team have a tendency to come and then go again. Multiple heads of data transformation have left and one (Kathleen Martin) sued the bank for unfair dismissal. Last year, the bank semi-demoted COO (in terms of reportees) Anand Selvaskari for failing to resolve the data issues and handed more responsibility to Tim Ryan from PWC instead.
After throwing money at the consent order, there have been some recent signs that Citi might like to spend a bit less on its middle office. The bank has been aggregating risk professionals in its lower cost locations.
Noetzel is hopefully well paid. Last September Citi was paying directors in data transformation salaries alone of $300k.
Photo by Katie Moum on Unsplash
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