March 28 Weaknesses in auditing led to
Citigroup Inc failing the U.S. Federal Reserve capital
assessments, fueling fears that there is negligence in controls
at the U.S. bank, the Financial Times reported on Friday citing
executives and others sources familiar with the matter.
Executives at Citi are promising better auditing and
anti-money laundering processes and will try to allay the
concerns that led regulators to veto the bank's plan to return
more cash to shareholders, the newspaper reported on its
There is also tension brewing among the bank's management,
the business daily said citing company sources.
Citigroup's Chief Executive Officer Mike Corbat had shown
himself to be "overconfident" that he had repaired the bank's
rickety relationship with regulators and had "mistaken a 'not
bad' relationship for a good relationship," the business daily
reported citing a senior executive.
Citigroup investors will likely have to wait until at least
2015 to receive an increase in dividends or stock buybacks after
the Federal Reserve rejected its plan to return more capital to
shareholders, the Wall Street Journal reported. (r.reuters.com/der97v)
A Citigroup representative was not immediately available to
(Reporting by Lehar Maan in Bangalore; Editing by Lisa