"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.
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