How Did Citigroup Inc Get It So Wrong?

The Federal Reserve released its annual Comprehensive Capital Analysis and Review, or CCAR, stress test results, which show which banks will be allowed to increase their dividends or initiate share buyback programs, and which won't. Among the big banks, the only one to fail the test this time around was Citigroup (NYSE: C  ) , it's second time failing in three years. Citigroup had conducted its own internal analysis and was confident it would be found in compliance with the Fed's wishes, so what went wrong?

In this segment of Thursday's Where the Money Is, Motley Fool banking analysts Matt Koppenheffer and David Hanson take a look at Citigroup, its relatively new CEO Michael Corbat, and how there could be such a discrepancy between Citigroup's analysis and the Fed's.

The biggest change you never saw coming
Do you hate your bank? If you're like most Americans, chances are good that you answered yes to that question. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.


Read/Post Comments (2) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 01, 2014, at 2:18 PM, mikewatson021 wrote:

    Citigroup Inc has failed the Federal Reserve’s Comprehensive Capital Analysis Review (CCAR). The announcement, made day before yesterday, came as a shock to both investors and Citigroup executives, and the bank’s stock has slid more than 5% since the news broke.

  • Report this Comment On April 01, 2014, at 2:38 PM, stevebry56 wrote:

    Citigroup Inc has failed the Federal Reserve’s Comprehensive Capital Analysis Review (CCAR). The announcement, made day before yesterday, came as a shock to both investors and Citigroup executives, and the bank’s stock has slid more than 5% since the news broke.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2893614, ~/Articles/ArticleHandler.aspx, 10/2/2014 10:31:29 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 16,786.08 -18.63 -0.11%
S&P 500 1,943.50 -2.66 -0.14%
NASD 4,417.72 -4.37 -0.10%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/2/2014 10:13 AM
C $51.10 Up +0.00 +0.01%
Citigroup Inc CAPS Rating: ***

Advertisement