WASHINGTON The Federal Reserve Board said Tuesday it will give four large banking firms, including Citigroup, more than six additional months to resubmit capital plans as part of stress test requirements overseen by the central bank.
Citi, HSBC North America Holdings, RBS Citizens, and Santander Holdings USA had been required to re-submit capital plans by June 26. But following requests for an extension, the Fed agreed to move the deadline to Jan. 5.
"The extensions will give the firms additional time to address the capital planning weaknesses identified by the Federal Reserve," the agency said.
Earlier this year, the Fed had rejected the firms' capital plans as part of its 2014 Comprehensive Capital Analysis and Review. The companies will not be allowed to increase their capital distributions until a new capital plan is approved by the Fed next year.