Citi Repeatedly Broke Rule on Intercompany Transactions: Rtrs

Citigroup repeatedly breached a US Federal Reserve rule that limits intercompany transactions, leading to errors in internal liquidity reporting, Reuters reports, citing a Citi document from December it has seen.

• Banks are required to restrict transactions like loans to the affiliates they control under so-called Regulation W
  • Rule is designed to protect depositors whose money is insured as much as $250,000 by the government
• Reuters could not determine whether the violations have been remedied
• A bank spokesperson told Reuters: “We are fully committed to complying with laws and regulations and have a strong Regulation W framework in place to ...