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CEO of Citigroup Jane Fraser testifies during a hearing before the House Committee on Financial Services at Rayburn House Office Building on Capitol Hill on September 21, 2022 in Washington, DC.
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Citigroup needs to address weaknesses in how it manages financial data, according to a review of the biggest banks’ so-called living will plans, U.S. banking regulators said Wednesday.
Citigroup’s shortcomings could hurt its ability to produce accurate financial reports in times of duress, the Federal Reserve and the Federal Deposit Insurance Corporation said in a letter to the bank’s executives. The biggest U.S. banks submitted plans last year that detail how they could be quickly unwound in the event of a bankruptcy.
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“Issues regarding the Covered Company’s data governance program could adversely affect the firm’s ability to produce timely and accurate data and, in particular, could degrade the timeliness and accuracy of key metrics that are integral to execution of the firm’s resolution strategy,” the agencies told Citigroup in a letter dated Nov. 22.
Citigroup was the only bank among the eight institutions reviewed that was found to have a shortcoming in its plan, the regulators noted.
In a statement, New York-based Citigroup said it was “completely committed” to addressing the shortcoming found in its 2021 resolution plan.
“As part of the transformation Citi has embarked upon, we are making significant investments in our data integrity and data management, as the letter notes,” the bank said. “We will leverage that work to remediate the shortcoming identified today, as we acknowledge there is much more work to do.”
Shares of Citigroup slipped 0.75% in early trading.
This story is developing. Please check back for updates.
