FinanceCitigroup faulted by U.S. banking regulators for poor data...

Citigroup faulted by U.S. banking regulators for poor data management in ‘living will’ review

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CEO of Citigroup Jane Fraser testifies throughout a listening to earlier than the Home Committee on Monetary Providers at Rayburn Home Workplace Constructing on Capitol Hill on September 21, 2022 in Washington, DC.

Alex Wong | Getty Photos

Citigroup wants to handle weaknesses in the way it manages monetary knowledge, in response to a evaluate of the most important banks’ so-called dwelling will plans, U.S. banking regulators stated Wednesday.  

Citigroup’s points might harm its capacity to provide correct reviews in instances of duress, and that might hamper the agency’s capacity to efficiently execute decision planning, the Federal Reserve and the Federal Deposit Insurance coverage Company advised the financial institution in a letter.

The most important and most vital U.S. banks need to submit detailed plans to regulators that specify how they are often rapidly unwound within the occasion of a large disruption or chapter, a part of the reforms that emerged from the 2008 monetary disaster. In a earlier spherical, six corporations together with Financial institution of America, Wells Fargo and Morgan Stanley have been discovered to have shortcomings of their capacity to provide knowledge, however all the companies addressed these issues, the regulators stated.

For the newest evaluate, Citigroup was the one financial institution among the many eight establishments that was discovered to have a shortcoming in its decision plan, the regulators famous. The corporate has to ship a roadmap to handle the problems by January, they stated.

“Points relating to the Lined Firm’s knowledge governance program might adversely have an effect on the agency’s capacity to provide well timed and correct knowledge and, particularly, might degrade the timeliness and accuracy of key metrics which can be integral to execution of the agency’s decision technique,” the businesses advised Citigroup in a letter dated Nov. 22.

In an announcement, the New York-based financial institution stated it was “fully dedicated” to addressing the shortcoming present in its 2021 decision plan.

“As a part of the transformation Citi has embarked upon, we’re making important investments in our knowledge integrity and knowledge administration, because the letter notes,” the financial institution stated. “We are going to leverage that work to remediate the shortcoming recognized at the moment, as we acknowledge there may be far more work to do.”

Shares of Citigroup slipped 2.2% in early buying and selling.

With CNBC’s Jeff Cox.

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