08:06 AM EDT, 06/18/2024 (MT Newswires) -- Citigroup's ( C ) data-management systems' rating is expected to be downgraded by the Federal Deposit Insurance Corp on Thursday to a "deficiency" from a "shortcoming," according to The Wall Street Journal, which cited unnamed sources familiar with the matter.

In November 2022, the Federal Reserve Board and the FDIC announced that they identified a "shortcoming" in Citigroup's ( C ) resolution plan. A resolution plan is also known as a "living will" that describes what is to become of a company if it faces bankruptcy.

A "shortcoming" rating indicates a weakness that raises questions about the feasibility of a plan and could result in additional requirements, if not corrected but is not as severe as a deficiency, according to the Federal Reserve.

"While we can't comment directly, we continue to make substantial investments to modernize our infrastructure, including the work we're doing to automate data and regulatory reporting processes," a Citigroup ( C ) spokesperson said in an emailed statement. "We have rigorous, firm-wide stress testing and resolution planning processes and we're always working to improve and strengthen those capabilities."

The spokesperson added that "we continue to have confidence that Citi could be resolved without the use of taxpayer funds or an adverse impact on the financial system."

The FDIC did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 60.16, Change: +0.10, Percent Change: +0.17