WASHINGTON (Reuters) – Citigroup Inc C.N agreed to pay a $400 million penalty and draw up a sweeping remediation plan after U.S. regulators identified “several longstanding deficiencies” and operational lapses, U.S. regulators said on Wednesday.

The Federal Reserve and Office of the Comptroller of the Currency said that the bank required “comprehensive corrective actions” and must overhaul its risk management, data governance and internal controls across the company.

The Fed said the action “requires the firm to correct several longstanding deficiencies.”

“For several years, the Bank has failed to implement and maintain an enterprisewide risk management and compliance risk management program, internal controls, or a data governance program commensurate with the Bank’s size, complexity, and risk profile,” the OCC said in its consent order.


In a statement, Citi said it was disappointed to have fallen short of regulatory expectations and has “significant remediation projects” under way.

The hefty penalty follows renewed public and regulatory scrutiny of Citi’s operations after an “error” led the bank to mistakenly send Revlon creditors $900 million of its own funds in August. The bank is pursuing legal action against some lenders who are refusing to return the payment.

Since then it has announced that Chief Executive Mike Corbat would retire earlier than expected and the bank would boost investment in its operational systems by $1 billion.


Incoming CEO Jane Fraser, who will take over early next year, has highlighted improving risk and control systems as a priority. “We will invest in our infrastructure, risk management and controls to ensure

a man sitting at a desk: Amazon expanded its Personal Shopper by Prime Wardrobe service to include men's clothing. Amazon

© Amazon
Amazon expanded its Personal Shopper by Prime Wardrobe service to include men’s clothing. Amazon

  • Amazon announced an expansion to its Personal Shopper by Prime Wardrobe service, leading many to wonder about the impact it will have on Stitch Fix. 
  • “Obviously, whenever Amazon does anything in retail, we all pay really close attention, and apparel has been a strategic focus of theirs for a long time,” Ed Yruma, managing director at KeyBanc Capital Markets, told Business Insider. 
  • But analysts said that Stitch Fix is still well-positioned to benefit from the wave of bankruptcies that have plagued retail this year, among other factors.
  • Visit Business Insider’s homepage for more stories.

Last week, Amazon expanded its Personal Shopper by Prime Wardrobe offerings to include men’s clothing. 


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For $4.99 a month, members receive shipments of clothing that are curated based on their style and fit preferences. Personal Shopper was first launched for women’s clothing in July 2019. According to an Amazon spokesperson, “hundreds of thousands” of people have since set up profiles for Personal Shopper. 

The news that Amazon was expanding the service set off alarm bells for many wondering whether it would spell doom for Stitch Fix, the publicly traded personal styling tech company.

Stitch Fix’s primary line of business is its “Fixes,” which are boxes of items selected for male and female shoppers by stylists using data on users’ personal style and fit. 

But analysts say that Amazon’s growth into this category won’t hurt Stitch Fix too much — not any more than Amazon’s usual innovations do, at least. 

“Obviously, whenever Amazon does anything in retail, we all pay really close attention, and apparel has been a strategic focus of theirs for a long time,” Ed Yruma, managing director at KeyBanc Capital Markets, told Business Insider. 

Yruma said

Over the past two weeks I’ve spent time with two individuals who represent the largest minority group in the United States: Americans with disabilities. The first, Ric Nelson, is a 37-year-old entrepreneur in Anchorage Alaska. Nelson has cerebral palsy and requires full-time assistance to manage his physical needs. Nelson is academically brilliant and highly energized to advance the interests of the disabled. He graduated in the top 10 percent of his high school class and, against high odds, used the scholarship he obtained to secure associate’s and bachelor’s degrees in Small Business Management and Business Administration. Most recently, he completed a master’s degree in Public Administration. 

a person sitting at a table using a laptop

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Nelson serves on multiple boards and after eight years of service became chair of the Governor’s Council on Disabilities and Special Education (GCDSE) for Alaska, where he is currently employed as Employment Program Coordinator. I learned from my discussion with Nelson the full extent of the plight of disabled employees. 


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Related: The Best Funding Resources for Disabled Entrepreneurs

The National Council on Disabilities (NCD) estimates between 40 and 57 million people in the U.S. are disabled. As of 2018, only 18 percent were employed. Statistics from the Census Bureau show the sum inched up slightly in 2019 but reached only 19.3 percent even prior to the global health crisis. 

Not surprisingly, the COVID recession has been disproportionately hard for the disabled, who’ve lost nearly one million U.S. jobs between March and May of this year. Complicating factors include jobs ended due to the extra risk of immunocompromised conditions and the predominance of disabled workers in lower-level positions in industries such as food and service that have been most heavily hit. Concerns for the ability to comply with ADA (American Disability Act) requirements in work-from-home arrangements have also

Welcome to the Weekly Fix, the newsletter that wants you to wear a mask.  –Emily Barrett, FX/Rates reporter.

This Changes Things

President Donald Trump’s announcement that he and First Lady Melania Trump had tested positive for Covid-19 is likely to dominate markets for a while. Risk assets, as expected, took a tumble when the news emerged, and money flowed to havens like the dollar, Japanese yen and Treasuries. Betting markets snapped, showing an initial sharp divergence in odds for a Republican versus Democratic victory in the Nov. 3 election.

Bets diverge sharply on news of the President's illness

Suffice to say, Wall Street will churn out a lot of research notes in the coming days. There was already an assumption that volatility will climb around the election, and the latest drama strengthens such arguments. Investors have been seeking protection for market swings in the event the election result is disputed. The added twist now is that volatility could also be sparked by the course of the virus on Capitol Hill.

We’ll have to wait and see if we’re in the midst of a truly game-changing event. In the short term, uncertainty will spur demand for Treasuries since investors are likely to get even more nervous about risks around the election, says Viraj Patel, a strategist at Arkera Inc. But he added there’s a limit to how much yields can fall in a “fleeting” risk-off environment.

Rates experts talking earlier this week were already disagreeing about what happens to yields after the election. TD Securities reckoned the market was overestimating the prospects for a split Congress and policy gridlock, and that a Democratic sweep could drive long-end yields lower in a bull-flattening move on policy uncertainty.

By contrast, Goldman Sachs’ Praveen Korapaty sees a united House and Senate from a Democratic sweep driving the 10-year benchmark as much as

Stitch Fix  (SFIX) – Get Report shares fell Tuesday after Amazon.com expanded its personal shopping platform to include men’s fashion.

Stitch Fix recently traded at $27.07, down 1.56%. The stock has risen 5% year to date.

Amazon’s move is a direct shot across the bow at Stitch Fix, a titan in the online personal shopping arena. Amazon’s service is available on mobile devices only for U.S. Prime customers. It’s called Personal Shopper by Prime Wardrobe, and was introduced for women’s fashion in July 2019.

Customers pay $4.99 a month, and in exchange will receive a parcel every month of up to eight items. The package includes personalized clothes meant to meet their style and budget tastes listed in an introductory survey.

Shipping is free, and customers have a seven-day window for returns.

Stitch Fix’s pricing model is a $20 styling fee whenever a customer asks for a new bundle of clothing. That $20 is then credited toward their clothes purchases. The frequency of the packages depends on the customer.

For the quarter ended Aug. 1, Stitch Fix reported a loss of $44.47 million, or 44 cents a share, swinging from a profit of $7.18 million, or 7 cents, in the year-earlier quarter. Revenue rose 3% to $443.41 million from $432.15 million.

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