U.S. Fed objects to capital plans by Citi, four others in stress tests
WASHINGTON, March 26
WASHINGTON, March 26 (Reuters) - The U.S. Federal Reserve on Wednesday objected to plans by Citigroup and four other banks to return capital to shareholders, saying it had uncovered deficiencies during an annual test of their financial robustness.
The Fed said it had rejected plans submitted by Citi and the U.S. units of HSBC, RBS and Santander due to weaknesses in their capital planning processes.
It also objected to Zions Bancorp's plan because the bank did not meet the minimum post-stress capital ratio.
The five banks will not be allowed to execute proposed dividends pay-outs and share buybacks.
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