Coca-Cola is pulling its newest ‘permanent’ flavor from store shelves
Prosecutors want to bring attempted assassination charge against man in Trump golf incident. Here’s what they’d have to prove
Bankman-Fried's ex-girlfriend Ellison to be sentenced over crypto fraud
North Korea vows response to US submarine's visit to South Korea
Senior US Treasury official to visit Colombia, Mexico this week
Fed's rate cut offers limited relief for US factories facing China competition
Philadelphia Phillies clinch first NL East title since 2011 with 6-2 win over Chicago Cubs
Muğla: A magical but overlooked corner of the Mediterranean
Sherri Shepherd forges path to Hollywood Walk of Fame
(Reuters) -The Federal Deposit Insurance Corp's five-member board plans to vote on Thursday to downgrade its rating on Citigroup's data-management systems to a "deficiency" from a "shortcoming," according to a government official familiar with the matter.
The U.S. Federal Reserve and the FDIC in 2022 had identified a shortcoming in Citi's so-called living will that details how the firm would be unwound in the event of bankruptcy. Escalating those concerns to a "deficiency" could kick-start a process where regulators order the bank to make changes to its operations if both the Fed and FDIC agreed.
The Fed, however, is not expected to join the FDIC in escalating its concerns about the bank's plan, the official said. The Wall Street Journal was the first to report on the move.
Spokespeople for the Fed and FDIC declined to comment.
Banking regulators had said problems with Citi's data governance could adversely affect its ability to produce timely and accurate data during a period of financial stress and told the bank to take urgent action to fix its resolution plan.
"We have rigorous, firm-wide stress testing and resolution planning processes and we're always working to improve and strengthen those capabilities," Citi said in a statement.
"Our balance sheet and financial health remains strong, with high levels of capital, liquidity and reserves. We continue to have confidence that Citi could be resolved without the use of taxpayer funds or an adverse impact on the financial system," the bank said.
(Reporting by Pritam Biswas in Bengaluru, Pete Schroeder in Washington and Tatiana Bautzer in New YorkEditing by Shilpi Majumdar and Matthew Lewis)
