Shares of Citigroup (C 0.26%) fell today, after the Fed rejected its proposal to raise its dividend and buy back $6 billion worth of stock based on the results of the Fed's CCAR round of banking stress tests. Citigroup had conducted its own analysis, and was confident that it would pass; but while its liquidity was well above acceptable levels, the structure for the way the bank projects losses was not up to the Fed's standards.
In this segment of Thursday's Investor Beat, host Chris Hill and Motley Fool analyst David Hanson take a look at Citigroup and CEO Michael Corbat, to decide how heavily he should be blamed for the surprising denial, and what this means for Citigroup from here.
