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Market Commentary and Intraday News

Citigroup won't seek to raise dividend in new plan

350 days ago

(AP:NEW YORK) Citigroup says it will not ask the Federal Reserve for permission to raise its stock dividend when it resubmits its capital plan on Monday.

Earlier in the year CEO Vikram Pandit promised shareholders a higher dividend. The bank currently pays a token amount of 1 cent per share every quarter.

The Fed dealt Citi a setback in March by saying that, unlike its peers, Citi didn't have enough capital to raise its stock dividend and also be prepared to withstand another financial crisis.

It was part of the Fed's annual "stress tests" in which large banks submit plans on how they plan to use their capital. The Fed asked Citi to resubmit its plan. Since March, Citi has raised more capital by selling some of its stakes in international banks.


Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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