The last couple weeks have been quite to very stressful for Citigroup chief exec Mike Corbat who, it was decided, could not survive in his gig for look should Citi fail another test. Despite the bank bringing a guy out of retirement for the specific purpose of helping it pass, nothing was for certain. Luckily for Corbat, those potted plants and pencils he threw in a box this afternoon just in case he had to leave in a hurry can be returned to their places on his desk.
Citigroup Inc. got the green light from the Fed to potentially increase its dividend for the first time since the financial crisis, a major victory for Chief Executive Michael Corbat after the firm failed the test again last year, marking its second failure in three years.
Sadly, luck was not on the side of Deutsche Bank, Banco Santander, and Brian Moynihan, the latter of whom would probably love to shout, "Fuck it I quit" but who will hold it together for a little while longer.
Twenty-eight of 31 large banks received Federal Reserve approval to return capital to investors on Wednesday but only after some of the biggest Wall Street firms came perilously close to failing the regulator’s annual “stress test.” A 29th firm, Bank of America Corp., received conditional approval of its capital plan and can move forward with boosting dividends or stock buybacks, but must resubmit its proposal to address “certain weaknesses” including its ability to measure losses and revenue, the Fed said. If the Fed isn’t satisfied with the firm’s revised plan the regulator can later restrict these capital distributions.