According to a report by The Wall Street Journal, an upgrade to Comerica Inc.’s technology platform has inadvertently led to millions of dollars in account shortfalls within its wealth management trust unit. The Office of the Comptroller of the Currency is currently examining the technology platform change at Comerica, which has resulted in transaction failures for trust clients.
Withdrawals made by clients from trust assets administered by Comerica have encountered difficulties, resulting in a depletion of the bank’s funds. To address this issue, Greg Carr, the executive vice president of wealth management at Comerica, stated that the bank has been diligently working to rectify the problems. At this point, the bank has written off $500,000 due to these issues.
Despite these challenges, Comerica stock has seen a 1% increase in recent trading. As of September 30, the bank’s trust unit administers $175 billion in assets under its administration.
This incident highlights the need for thorough testing and implementation when upgrading technology platforms, especially in sectors as critical as wealth management and trust services. Comerica is committed to resolving these issues swiftly and ensuring that their clients’ interests are safeguarded.