Citigroup (C) Breaches Fed's Rule for Intercompany Transaction

Citigroup Inc. (C) is again in the headlines for repeatedly breaching the Federal Reserve’s Regulation W, which limits intercompany transactions. Those breaches led to discrepancies in the company’s internal liquidity reporting. This was reported by Reuters, citing an internal company document. Regulation W is in place to protect customer deposits and restrict the transactions between a bank and its affiliates in order to protect depositors whose funds were insured by the government. This violation is not a ...