Fed bars shareholder payout plans from Citi, four other banks

The U.S. Federal Reserve on Wednesday rejected Citigroup's planned payout to shareholders because of shortcomings found in its annual check-up of the financial health of the country's biggest banks, the second time Citi was dealt a blow in the so-called stress tests. Citi was among five banks that the Federal Reserve blocked from going through with planned payouts because of results from the stress tests. The Fed also blocked plans for higher dividends or share buybacks submitted by the U.S. units of HSBC, RBS and Santander due to weaknesses in their capital planning processes.

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