Citigroup was fined $79 million (£62 million) by British regulators on Wednesday for nearly dumping $189 billion in stock in the European market.
CNN reports that the fine was imposed by different organizations. The Financial Conduct Authority (FCA) imposed a fine of $36 million, while the Bank of England’s Prudential Regulation Authority issued a $43 million fine.
The initial fines totaled $112 million, but Citigroup agreed to a settlement of 30% less than the original amount.
“We are pleased to resolve this matter from more than two years ago, which arose from an individual error that was identified and corrected within minutes,” said a Citigroup spokesperson to CNN. “We immediately took steps to strengthen our systems and controls, and remain committed to ensuring full regulatory compliance.”
The FCA alleged that a “fat-finger error”, caused by faulty computer input, was behind the incident. It was found that a trader initially meant to sell $58 million in stocks, but mistakenly inputted a sale of $444 billion.
Citigroup managed to block $255 billion of the sale, preventing $189 billion from being dumped into the European market. Approximately $1.4 billion worth of stocks were sold before the trader canceled the transaction.
It is unknown if the trader faced termination from their position in the company.
This incident adds to Citigroup’s recent struggles. In November, the bank announced a significant number of layoffs as part of a planned corporate restructure under CEO Jane Fraser.
This restructuring affected various roles within the company, from managing directors to lower-level personnel. The final changes were implemented by March.
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