Seeking Alpha

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."
  • Press release
  • 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
  • Full CCAR results
Comments (17)
  • bdubya13
    , contributor
    Comments (82) | Send Message
     
    Big Surprise....who will be the next CEO to captain this train wreck..5 years of nothing!!
    26 Mar, 05:30 PM Reply Like
  • jjm70
    , contributor
    Comments (22) | 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, 06:45 PM Reply Like
  • Ted Bear
    , contributor
    Comments (574) | 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, 07:03 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (687) | 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, 07:09 PM Reply Like
  • jjm70
    , contributor
    Comments (22) | 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, 07:29 PM Reply Like
  • JD in NJ
    , contributor
    Comments (807) | 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, 10:17 PM Reply Like
  • bbro
    , contributor
    Comments (9322) | Send Message
     
    Tangible book value...55.38
    26 Mar, 06:30 PM Reply Like
  • Ted Bear
    , contributor
    Comments (574) | Send Message
     
    Evidently the Fed doesn't think so...either.
    26 Mar, 07:04 PM Reply Like
  • Hello Again 83
    , contributor
    Comments (431) | Send Message
     
    Feel for Citi. OUCH! Buying more BAC.
    26 Mar, 07:11 PM Reply Like
  • ronethpier@gmail.com
    , contributor
    Comments (123) | Send Message
     
    miss Vikram Pandit, i am sure if he is ceo citi will past the test
    26 Mar, 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, 08:25 PM Reply Like
  • Kleenx
    , contributor
    Comments (3) | 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, 08:25 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (687) | 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, 08:53 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8151) | Send Message
     
    Golden buying opportunity in an undervalued global bank.

     

    Thanks, Fed!!
    26 Mar, 08:57 PM Reply Like
  • vinhvo66@yahoo.com
    , contributor
    Comments (16) | Send Message
     
    Tangible book value of bank stocks have been cooked. Citigroup stocks before reverse split 1:10 was $5/share.
    27 Mar, 03:01 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8151) | Send Message
     
    "Cooked"?

     

    Proof?
    27 Mar, 05:19 AM Reply Like
  • june1234
    , contributor
    Comments (2499) | 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, 04:36 AM Reply Like
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