Citigroup One of Five to Fail Fed’s Stress Test
Bloomberg reported Citigroup’s capital plan was one of five that failed the Federal Reserve stress test, noting Bank of America won approval for its first dividend increase since the recession. Bloomberg said the U.S. units of Royal Bank of Scotland, HSBC and Santander, along with Citigroup, failed due to “concern about the quality of their processes,” citing a Fed statement.
Bloomberg said further that the results of the stress test shows that lenders still have obstacles to face when boosting dividends and buybacks, despite firms doubling their capital since the first public stress test in 2009.
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