In March, the Fed gave glowing marks to most of the large banks,cheap oakley sunglasses, passing 15 out of 19 tested, but the central bank called out a few laggards,fake oakleys, including Citigroup, forcing it and others to revise planned share buybacks and dividends.
That left analysts and investors asking if Citi CEO Vikram Pandit had been too aggressive in his proposal or if he had misunderstood how examiners would score its potential losses in a brutal economy.
According to the report published by the WSJ,cheap oakley sunglasses, the size of the request submitted by the company could have hurt Citigroup’s chances of winning Fed approval.
Citigroup had not asked explicitly for a specific amount. Rather, the $8 billion size was based on a formula in which buybacks were to be made over a two-year period contingent upon the third-largest U.S. bank meeting certain targets, the Journal said,fake oakleys, citing people familiar with the matter.
Citing another set of unnamed sources,cheap oakley sunglasses, the paper said that under some circumstances the buybacks could have gone as high as $10 billion as per the plan.
The bank, however,fake oakleys, did not ask the Fed to increase its quarterly dividend, the Journal reported.
The Federal Reserve was not immediately available for comment,cheap oakley sunglasses.
Citigroup shareholders gave a vote of no confidence this week to the bank’s executive compensation plan on Tuesday, dealing a surprise embarrassment to Pandit.
(Reporting by Himank Sharma,fake oakleys; Editing by Ron Popeski)