Citi breached a rule meant to keep banks safe, made liquidity reporting errors
Citigroup (C.N), opens new tab repeatedly breached a U.S. Federal Reserve rule that limits intercompany transactions, leading to errors in its internal liquidity reporting, according to a Citi document from December seen by Reuters.
Reuters is reporting the infractions for the first time. Under so-called Regulation W, banks are required to restrict transactions like loans to the affiliates they control. The rule is meant to protect depositors
Source: REUTER