The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu discusses topics across the investing world.

Citigroup was denied in the latest round of stress tests. Its projections passed the tests except for its capital allocation plan. In other words, its plan to increase dividends and/or repurchase shares needs to go back to the drawing board. Anand explains why he thinks that's a good thing and how far away Citi is from being stable enough to raise dividends.

The financial heavies are getting a lot of press these days. And much of it is negative. But, there's one small bank that's flying under the radar. It has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Buffett would probably be interested in if he could still invest in small banks, just click here.