In a report the Wall Street Journal said, federal regulators are preparing to impose a fine on Citigroup Inc for failing to improve its risk-management systems,

With the news reaching the market, Citi’s shares fell by 3.3%.

According to the report, the move that is schedule to come, initiated by the Office of the Comptroller of the Currency and the Federal Reserve, has accelerated retirement plans for Citi’s CEO Michael Corbat; regulators have however not formally asked him to step down, said sources.

Neither Citigroup nor Federal regulators immediately responded to requests for comments.

Earlier this month, Citigroup named Jane Fraser as its next CEO.

Fraser is scheduled to take over from Corbat in February 2021.

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Tags: CEO, Citigroup Inc, Comptroller of Currency, costs, failing to, federal regulators, federal reserve, fine, improve, Jane Fraser, Michael Corbat, penalty, regulators, retire, retirement plans, risk-management systems, shares, step down, Wall Street Journal, WSJ