The Federal Deposit Insurance Corp. plans to downgrade Citigroup's data-management systems rating from a 'shortcoming' to a 'deficiency' during an upcoming vote, underlining ongoing compliance challenges for the bank.
Citigroup, along with other major banks, must submit living wills outlining crisis management strategies every other year. Citigroup's current plan, submitted in 2023, is under scrutiny after the FDIC and the Federal Reserve identified a shortcoming in the data-management systems.
Although the FDIC's action itself won't impose immediate penalties on Citigroup, it signifies persistent regulatory struggles for the bank. Citigroup's journey to regain regulatory confidence faces obstacles with various government agencies having oversight roles.
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