The Wall Street Journal, June 17, 2024, Citigroup Facing New Regulatory Knock On Its Living Will
The Federal Deposit Insurance Corp.’s five-member board intends to vote Thursday to downgrade its rating on Citi’s data-management systems to a “deficiency” from a “shortcoming,” people familiar with the matter said. The FDIC and the Federal Reserve had flagged the shortcoming in 2022 after a review of the resolution plan.
The Fed isn’t expected to join the FDIC in escalating its concerns about the bank’s plan, which was first submitted in 2021, the people said.
Citi said Monday it was confident in its ability to wind down properly, without the use of taxpayer funds, if needed.
“We continue to make substantial investments to modernize our infrastructure, including the work we’re doing to automate data and regulatory reporting processes,” the bank said in a statement. “We have rigorous, firm-wide stress testing and resolution planning processes and we’re always working to improve and strengthen those capabilities.”
