Citigroup fails Federal Reserve's stress test for second time in 3 years

The Federal Reserve on Wednesday rejected Citigroup’s plan to expand dividends and repurchase stock, stating it was concerned about the bank’s “overall reliability,” according to reporting by the New York Times.

This decision was the second time in three years the Fed denied Citigroup’s capital plan.

Analysts including CLSA banking analyst Mike Mayo say the ruling indicates Citigroup’s financial processes are still deficient five years after the banking crisis. “It’s not as though they haven’t had time to clean up their act,” Mayo says.

Read more from the New York Times.