Fed OKs Citigroup's Capital Plan

The Federal Reserve has given the green light to a revised capital plan submitted by Citigroup (NYSE:C) in June.

The Fed initially rejected Citi's capital plan earlier this year when it concluded that its Tier 1 capital would fall just short of the 5% minimum requirement, to 4.9%, in a hypothetical stress scenario, or if it planned to issue dividends or repurchase shares. Citigroup said in June that it had resubmitted the plan without requesting approval to raise its dividend or buy back stock, and the Fed signed off on it this week.

The company will make plans regarding its 2013 capital plan later this year, Citigroup said Wednesday. Next year's plan is due in January.

SunTrust Banks (STI), whose plan was also rejected earlier this year, said this week that it received no objection from the Fed on its revised plan.  

The Fed also signed off this week on Fifth Third Bancorp's (FITB) new plan, which included share repurchases of up to $600 million and a 2-cent increase in its stock dividend. The Cincinnati company passed the stress test earlier, but the Fed had denied its request to buy back stock and increase the dividend.

Ally Financial is continuing to have discussions with its regulators about its revised capital plan, Reuters reported Thursday. Ally failed the stress test earlier with the weakest Tier 1 capital ratio of 2.5% under the scenario.