Jonathan Weil of Bloomberg believes it lies with the Office of the Comptroller of the Currency (OCC) when comparing the OCC's opinion of Citicorp's finances to Citicorp's opinion.
On February 14, 2008 the OCC sent Citi a letter stating that the bank's internal controls were not very good and the bank's valuation of subprime mortgages could use some work. Citi's annual report was issued a week later and, surprise, no mention was made of the OCC's concerns, everything was okay. Yet, before 2008 ended, Citi had to borrow $45 billion from us. Did Citi's annual report conform to reality?
On February 14, 2008 the OCC sent Citi a letter stating that the bank's internal controls were not very good and the bank's valuation of subprime mortgages could use some work. Citi's annual report was issued a week later and, surprise, no mention was made of the OCC's concerns, everything was okay. Yet, before 2008 ended, Citi had to borrow $45 billion from us. Did Citi's annual report conform to reality?
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