Citi Bank down Fall Essay Example

r of employees, leading to significant job cuts. Additionally, Citreous faced a loss of credibility due to its substantial losses and write-downs, which caused stakeholders to fear the bank's collapse. The bank also relied heavily on credit rating agencies for reports and recommendations, risking the reliability of its credit ratings. Another issue was the reliance on shadow banking systems, such as hedge funds and Structured Investment Vehicles (Siva), which provided corporate financing services like traditional banks. Citibank's downfall began with the closure of its consumer banking division and loss of interest in its international presence. The bank failed to pass the Federal Reserve's annual stress test, leading to further challenges.According to the Fed, Citibank's capital planning practices in 2014 displayed multiple inadequacies, and these were due to flawed processes rather than a flawed business model. The solution to address