Citi dives 5.6% after Fed rejects capital plan


"We are deeply disappointed by the Fed's decision regarding the additional capital actions we requested," says Citigroup (C) CEO Michael Corbat. "The additional capital actions represented a modest level of capital return and still allowed Citi to exceed the required threshold on a quantitative basis."

As previously reported, Citigroup's capital return plan was rejected for "qualitative" reasons, with the Fed saying promised improvements in the bank's capital planning processes have not been made fast enough.

Citi had shot for a boost in the dividend to a nickel a share, and a $6.4B repurchase program. The bank will be allowed to continue with its current $0.01 dividend and $1.2B buyback plan.

Shares -5.6% AH on heavy volume

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Comments (17)
  • bdubya13
    , contributor
    Comments (117) | Send Message
     
    Big Surprise....who will be the next CEO to captain this train wreck..5 years of nothing!!
    26 Mar 2014, 05:30 PM Reply Like
  • jjm70
    , contributor
    Comments (51) | Send Message
     
    Not saying I love the CEO, But 5 years ago stock was $10.00, 2 yrs ago $25.00, last Feb. $42.00. I don't what your doing with your money but this stock has done well for me.
    26 Mar 2014, 06:45 PM Reply Like
  • Ted Bear
    , contributor
    Comments (696) | Send Message
     
    Ummm....didn't they reverse split the stock 1:10?

     

    So, five years ago the share were more of less right here?
    26 Mar 2014, 07:03 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (1214) | Send Message
     
    And ten years ago it was at a split adjusted $500 per share - ten times higher than the current price.

     

    Anybody who considers owning Citigroup should read what Mike Mayo had to say about the bank in his book "Exile on Wall Street" - he knows what he is talking about and doesn't not paint a pretty picture...
    26 Mar 2014, 07:09 PM Reply Like
  • jjm70
    , contributor
    Comments (51) | Send Message
     
    When a stock splits the price chart is adjusted to reflect the split. All that changes is the number of shares you hold.
    26 Mar 2014, 07:29 PM Reply Like
  • JD in NJ
    , contributor
    Comments (1634) | Send Message
     
    When they reverse-split my one dollar cost basis shares became 10 dollar shares and now they're worth significantly more than that. I bought them at a buck on what was basically a lark, sold off half of it to get my original money back when it doubled, and have let the rest ride.

     

    My only regret, in my 20:20 hindsight, is that I didn't buy a lot more.
    26 Mar 2014, 10:17 PM Reply Like
  • bbro
    , contributor
    Comments (11195) | Send Message
     
    Tangible book value...55.38
    26 Mar 2014, 06:30 PM Reply Like
  • Ted Bear
    , contributor
    Comments (696) | Send Message
     
    Evidently the Fed doesn't think so...either.
    26 Mar 2014, 07:04 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (669) | Send Message
     
    Feel for Citi. OUCH! Buying more BAC.
    26 Mar 2014, 07:11 PM Reply Like
  • roneth ozarraga
    , contributor
    Comments (185) | Send Message
     
    miss Vikram Pandit, i am sure if he is ceo citi will past the test
    26 Mar 2014, 08:13 PM Reply Like
  • Red Lion
    , contributor
    Comments (10) | Send Message
     
    Citi's internal culture does not attract top employee talent. Customer's are not attracted by its reputation. Shareholders are not attracted when diluted. C is a loser!!!
    26 Mar 2014, 08:25 PM Reply Like
  • Kleenx
    , contributor
    Comments (7) | Send Message
     
    Company wanted to buy back $6.4 billion in shares. Now everyone else can buy at 5% cheaper. Sounds good to me!
    26 Mar 2014, 08:25 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (1214) | Send Message
     
    Yep, the same company that repurchased $21 billion worth of shares in 2007, at approximately ten times the current share price, yet didn't spend that much CUMULATIVELY repurchasing shares over the ensuing five years. Go take a look at a stock chart if you want to consider their prior timing of large repurchases...
    26 Mar 2014, 08:53 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11057) | Send Message
     
    Golden buying opportunity in an undervalued global bank.

     

    Thanks, Fed!!
    26 Mar 2014, 08:57 PM Reply Like
  • vinhvo66@yahoo.com
    , contributor
    Comments (50) | Send Message
     
    Tangible book value of bank stocks have been cooked. Citigroup stocks before reverse split 1:10 was $5/share.
    27 Mar 2014, 03:01 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11057) | Send Message
     
    "Cooked"?

     

    Proof?
    27 Mar 2014, 05:19 AM Reply Like
  • june1234
    , contributor
    Comments (4252) | Send Message
     
    I know with all the time they had to prepare ending up one of the 5 who got rejected does not make you look very competent. Stock got punished AH as a reward
    27 Mar 2014, 04:36 AM Reply Like
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