© Reuters.
By Sam Bogda
Actions Citigroup The New York Stock Exchange (NYSE) plunged on Wednesday after agencies identified a loophole in their resolution plan.
Shares of the bank are down more than 2%, and are trading around the $48.22 mark at the time of writing.
The Federal Reserve and the Federal Deposit Insurance Corporation announced the results of a joint review of decision plans submitted by the eight largest and most complex national banking institutions in 2021.
Plans should outline a strategy for “immediate and orderly bankruptcy resolution” in the event of significant financial hardship or bank failure.
However, while seven of the financial institutions’ plans were sound, the agencies noticed a gap in Citigroup’s plan.
“In Citigroup’s decision plan, the agencies found deficiencies related to data quality and governance issues that the Board previously identified in its enforcement actions in October 2020,” the Federal Reserve and Federal Deposit Insurance Corporation said.
Following the announcement, Citi said it was pleased to “address the gap identified in its resolution plan for 2019,” and that it is “fully committed” to addressing the gap identified in its resolution plan. July 2021.
They added, “We are making significant investments in the integrity and stewardship of our data, as the letter states. We will leverage this work to address the gap identified today, as we recognize there is still much work to be done.”