What's Going On With Citigroup Shares Today?

Citigroup Inc. (C) reportedly breached a U.S. Federal Reserve rule on intercompany transactions, leading to errors in its internal liquidity reporting.

According to the document, which provides a 2023 year-end snapshot of some of Citigroup’s work on regulatory issues “the firm’s subsequent reaction to the breaches resulted in liquidity reporting inaccuracies,” said Reuters.

These infractions are being reported for the first time. Regulation W mandates banks limit transactions, such as loans, with their affiliates to protect depositors with government-insured funds up to $250,000.

The Regulation W violations come as Citigroup (C) addresses other issues with its risk management and internal controls.

According to the document, the “longstanding breaches revealed weaknesses” in Citigroup’s “ability to identify, monitor, and prevent” future Regulation W violations.

Meanwhile, “proposed revisions to policies and procedures do not appear to provide sufficiently clear guidance for employees to assure compliance with the regulation.”

A bank spokesperson stated, “We are fully committed to complying with laws and regulations and have a strong Regulation W framework in place to ensure prompt identification, escalation and remediation of issues in a timely manner.”

As per the report, in 2020, authorities deemed its risk practices “unsafe and unsound,” and in 2023, the bank was criticized for how it assessed counterparty risks.

This month, Citigroup (C) was fined $136 million for inadequate data management progress, and the bank reportedly agreed with the Bourse de Montreal to settle claims of failing to report large options contract positions.

In May, British regulators imposed a hefty fine of over $78.5 million on Citigroup (C) for its trading system and control shortcomings.

Citigroup (C) stock has gained more than?36%?in the past 12 months. Investors can gain access to the stock via?First Trust Nasdaq Bank ETF (FTXO)??and?Series Portfolios Trust InfraCap Equity Income Fund ETF .

C Price Action: Citigroup (C) shares are down 0.061% at $65.86 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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