The Bank of England has opened an investigation into Wall Street banking giants, including Goldman Sachs and Morgan Stanley, over their financial reporting.
The Prudential Regulation Authority (PRA), the supervisory division of the Bank, has launched a review of the data it is handed by the American banks’ UK arms on crucial measures, including their capital buffers.
The scope of the review could also cover Bank of America Merrill Lynch and Canadian lender Scotiabank, Sky News reported.
The move comes after US rival Citi was fined a record £44m in November by the PRA for “serious and widespread” reporting and governance failures. The watchdog said Citi did not meet regulatory reporting standards between 2014 and 2018, and that Citi had overstated its capital and liquidity