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.
- Islamic State video purports to show beheading of UK hostage David Haines |
- North Korea sentences U.S. citizen Matthew Miller to six years hard labor |
- Scots independence battle reaches fever pitch on streets and screens |
- UK's Cameron resists calls for air strikes despite hostage killing |
- NATO countries have begun arms deliveries to Ukraine: defense minister |