Dear readers,
We are glad to announce of our new website, https://uk.webfg.com. There you will continue to have access to the full content of the Sharecast newswire, alongside an improved and expanded suite of market data and research tools for both the UK and the main international markets. As a first step in the transition to the new site, over coming days and weeks the news and data pages on Sharecast.com will redirect you towards the new website which we earnestly hope you will find even more useful than the current service. Should anyone like to comment or provide constructive criticism on the new layout or what features they would like to see added or deleted, do please send us an e-mail to info@digitallook.com. Lastly, of course, we wish to express our heartfelt gratitude for your support and encouragement over the years as we continued to grow and expand the service.
Very best,
Sharecast

Login/Register

Citigroup seeks Fed approval for stock buyback

International

Citigroup seeks Fed approval for stock buyback

Fri, 08 March 2013
Article viewed 3 times
http://stmedia.digitallook.com/web/img/dl/generic_money_main4.jpg
bool(false)
Citigroup seeks Fed approval for stock buyback
Citigroup Inc. Quote more

Price: 72.33

Chg: -0.80

Chg %: -1.09%

Date: 12:10

S&P 500 Quote

Price: 2,554.80 Chg: -4.56 Chg %: -0.18% Date: 12:10

Citigroup has requested the Federal Reserve's permission to buy back stock after the monetary authority's report showed that the third largest US bank had passed the third round of stress tests.

The Fed rejected the financial institution's request last year, but its recent report showed that the bank managed to reach a tier-1 capital level of 8.3% compared to the 5% minimum requirement. Consequently, Citigroup is now looking to buy back $1.2bn of its stock to, in the words of the bank, “offset estimated dilution created by annual incentive compensation grants”.

The Fed revealed yesterday that 17 of the 18 US banks undergoing the third round of stress tests had passed the 5% tier-1 capital ratio minimum and Citigroup placed third. The only entity to fail the requirement was Ally Financial.

“The nation's largest bank holding companies have continued to improve their ability to withstand an extremely adverse hypothetical economic scenario and are collectively in a much stronger capital position than before the financial crisis,” the Fed report said.

Citigroup was the only bank to make its pay-out request public although Morgan Stanley announced in January that it was requesting permission to move ahead with the full acquisition of its brokerage joint venture. Citigroup owns a 35% share in the firm.

JM