Shares of Citigroup collapse due to problems with the banking regulator
2022.11.23 13:38
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Shares of Citigroup collapse due to problems with the banking regulator
Budrigannews.com – Citigroup After agencies discovered a flaw in the company’s plan for resolution, shares fell on Wednesday.
At the time of writing, the shares of the bank are down more than 2% and are trading around $48.22.
The outcomes of their joint examination of the resolution plans submitted in 2021 by the eight most prominent and complex domestic banking organizations were made public by the Federal Reserve Board and the Federal Deposit Insurance Corporation.
The plans need to portray the technique for “fast and deliberate goal in liquidation” in case of huge monetary trouble or the bank’s disappointment.
However, the agencies discovered a flaw in Citigroup’s plan, despite the fact that seven of the financial institutions’ plans were in order.
The Federal Reserve Board and the Federal Deposit Insurance Corporation stated, “In Citigroup’s resolution plan, the agencies found a shortcoming related to data quality and data management concerns previously identified by the Board in its October 2020 enforcement action.”
Citi said that it was pleased to have “addressed the shortcoming identified in the 2019 Resolution Plan” and that it is “completely committed” to dealing with the shortcoming identified in its July 2021 plan following the announcement.
According to the letter, “We are making significant investments in our data integrity and data management.”They continued, “We will utilize that work to rectify the flaw identified today, as we acknowledge there is much more work to be done.”
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