Citigroup CEO Addresses Fed Concerns at Annual Meeting
April 22 2014 - 11:04AM
Dow Jones News
By Christina Rexrode
Michael Corbat kicked off the Citigroup Inc. shareholder meeting
with the topic that he said was on the forefront of his mind--the
Federal Reserve's rejection of the bank's request to raise its
dividend and expand its share buyback plan.
Mr. Corbat said the bank had proposed what it believed was a
"moderate and appropriate level of capital to return" to
shareholders. Making sure the bank passes next year's Federal
Reserve stress test, Mr. Corbat said, would be his "highest
priority" for the rest of 2014.
Mr. Corbat repeated statements he made during the bank's
first-quarter earnings report last week: He does not believe that
the Fed has problems with the bank's underlying business model,
strategy or capital levels. But just what the Fed's problems might
be, he didn't make clear. Mr. Corbat said the bank is "consulting
close with the Fed" to identify "exactly where they believe our
procedures fell short."
Write to Christina Rexrode at christina.rexrode@wsj.com
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