New Delhi (CoinChapter.com): Citigroup must address data management issues in its “living will”, according to a review of the largest banks’ plans, released Wednesday.
Citigroup’s inadequacies may hinder the production of accurate financial reports in times of duress, according to a letter from the Federal Reserve and the Federal Deposit Insurance Corporation to the bank’s executives. The biggest U.S. banks submitted plans last year that describe how they could be quickly disbanded in the event of bankruptcy.
Major, critical U.S. banks must submit thorough plans to regulators explaining how they may be rapidly unwound in case of huge upheaval or bankruptcy, one of the reforms from the 2008 financial crisis. Six companies including Bank of America, Wells Fargo and Morgan Stanley were found to have issues producing data in a previous phase, but all of them addressed those issues, the regulators said.
The Federal Reserve and the Federal Deposit Insurance Corporation said in a joint statement that Citigroup was the only bank among the eight institutions reviewed to have a flaw in its plan.
Citigroup’s Statement
Citi’s data governance program might adversely affect the firm’s capability to generate accurate and up-to-date data, particularly detrimental to key metrics that are critical to the firm’s resolution strategy, according to a letter from the agencies dated November 22.
Citigroup said in a statement that it is ‘totally dedicated’ to addressing the problems with its 2021 resolution plan, which was identified in a new report.
Citi said in the letter that it was making big investments in data integrity and data management as part of its transformation. “We will make use of the work we have done to address the issues identified today, as we accept that there is still much to be done.”
Shares of Citigroup slipped 2.2% in early trading.
