Citi Draws SEC Fine for Unauthorized Trading, Other Violations

Citigroup Inc. was fined $10.5 million for multiple infractions, including allegations that employees engaged in unauthorized proprietary trading, a practice that regulators famously restricted after the 2008 financial crisis. Three Citigroup traders mismarked illiquid positions in proprietary accounts from 2013 to 2016, in two instances to cover losses from unauthorized transactions, according to a Thursday statement from the Securities and Exchange Commission. The SEC sanctioned Citigroup in part for failing to detect the misconduct sooner and for inadequate supervision of the traders.