Bank executives and investors lashed out at the Federal Reserve yesterday, attacking its stress tests as “opaque” after the results battered Citigroup’s share price and rattled banks around the world.
Citi’s shares fell 5.5 per cent yesterday, the most since November 2012, after the Fed vetoed the bank’s request to increase its dividend and share buyback.
Some shareholders expressed anger at Citi executives. Mike Corbat, who replaced the ousted Vikram Pandit as chief executive in 2012, was charged with improving relations with regulators after a previous failure on the Fed’s annual capital assessment.
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