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Citigroup: Capital Returns Higher Than Expected

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Summary

  • Citigroup submitted a surprisingly large capital return plan that met no objections from the Fed.
  • The results show the other large financial institutions requiring adjusted capital return plans.
  • Previous recommendation to own the stock remains intact.
For a very beleaguered bank, Citigroup (NYSE:C) passed the Fed stress tests with flying colors. Considering the failure last year and the executive jobs on the line, the opinion all along was that the bank would easily pass the test this year. The surprise is the size of the capital returns approved and the struggles of the other leading financial institutions.

Read the full article on Seeking Alpha.


Disclosure: Long C. Please review the disclaimer page for more details. 



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