Capital
Fed Gives Citigroup, Others More Time For Cap Plans
The Federal Reserve gave Citigroup and three other banks more time to resubmit capital distribution plans after the lenders underwhelmed the central bank in this year's round of stress tests.
The four banks, which include the U.S. units of HSBC, Royal Bank of Scotland and Santander, now have until Jan 5, 2015, to resubmit their plans. The original deadline was this upcoming Thursday.
The quartet of banks will not be permitted to increase their capital distributions until the new plans are submitted, the Fed said.
"The extensions will give the firms additional time to address the capital planning weaknesses identified," the central bank said in a statement.
Citigroup shares rose 0.6% to 48.35 in the stock market today. The New York-based bank's stock is down 7.3% this year. Also in today's trading, HSBC shares fell 0.4% to 51.45, RBS fell 1.2% to 11.11 and Santander rose 0.1% to 10.60.
Zions Bancorp, the fifth bank that was rejected by the Fed, has already resubmitted its plan and didn't seek a delay. Zions shares rose 0.8% to 30.28.
(Published by Investors.com - June 24, 2014)