Pandit Repeats Moynihan Misstep as Fed Rebuffs Citigroup
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Citigroup Inc. Chief Executive Officer Vikram Pandit missed the lesson that Bank of America Corp. CEO Brian T. Moynihan learned when it comes to the Federal Reserve’s stress tests.
Citigroup fell 3.8 percent in New York trading today after becoming the biggest U.S. lender to fail the regulator’s exam because of Pandit’s plan to boost dividends or stock repurchases. Bank of America, whose payout request was rejected last year, passed the 2012 test -- designed to see if banks have enough capital to handle a hypothetical economic slump -- after Moynihan decided to keep his dividend at 1 cent.