A review of Citigroup’s (NYSE:C) resolution plans for 2021 identified some data-related shortcomings. As a result, the Federal Reserve and the Federal Deposit Insurance Corporation have asked the company to present a plan addressing these issues by January 31, 2023.
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Resolution plans, also known as “living will,” describe the company’s strategy for dealing with situations such as financial distress or company failure. These plans are required to be submitted annually by the eight largest banks in the U.S.
Citigroup is the only banking giant that has problems with its 2021 living will, according to the Feds. Citi shares declined 2.2% in yesterday’s trading session.
A joint review by the regulators raised doubts about Citigroup’s ability to present accurate data at times of financial distress and in relation to the 2021 Targeted Plan. The regulators’ concerns are related to the data governance issues that were previously identified by the Fed in October 2020.
In response to this shortcoming, Citigroup said, “We are pleased that we have addressed the shortcoming identified in the 2019 Resolution Plan and we are completely committed to addressing the shortcoming identified in our July 2021 plan.” The company disclosed that it is making considerable investments to improve data integrity and data management processes.
Is Citigroup Stock a Buy, Hold, or Sell?
Citigroup stock has received four Buy, nine Hold, and one Sell recommendations for an overall Hold consensus rating. The average stock price forecast of $55.50 implies 15.05% upside potential.
The stock has a negative signal from hedge funds. Our data shows that hedge funds sold 360.9K shares of Citigroup last quarter. At the same time, bloggers are bullish on the stock.
