Citigroup’s CEO Wins Fed Approval for Capital Plan: Timeline

Citigroup Inc. Chief Executive Officer Michael Corbat might have strengthened his hold on the top job after the Federal Reserve approved the bank’s capital plan for the first time in two years.

Below is a timeline of noteworthy events relating to Corbat’s tenure as CEO.

March 13, 2012: Citigroup, under CEO Vikram Pandit, fails to meet some minimum standards in the Fed stress tests.

Oct. 16, 2012: Corbat takes over as CEO, and a person familiar with the matter says the March failure contributed to Pandit’s ouster.

March 14, 2013: The Fed approves Citigroup’s $1.2 billion buyback plan after the bank was deemed capable of withstanding a deep recession and maintaining capital above a regulatory minimum.

Feb. 28, 2014: Citigroup says it discovered fraud on loans to a Mexican oil-services company that forced it to trim 2013 profit by $235 million.

March 26, 2014: Citigroup’s capital plan is rejected by the Fed because of deficiencies in planning practices. The Fed blocks the bank’s attempt to boost the quarterly dividend and put in place a $6.4 billion share buyback.

April 3, 2014: Corbat reacts to the Fed’s rejection by asking Eugene McQuade to cancel his retirement and lead Citigroup’s submissions over the next year.

April 7, 2014: Citigroup announces an agreement to pay $1.13 billion to settle claims from mortgage-bond investors.

April 14, 2014: Corbat says that he should be held accountable for failing the stress test.

June 23, 2014: Citigroup agrees to sell its consumer-banking business in Spain to Banco Popular Espanol SA

Sept. 3, 2014: BB&T Corp. announces a deal to buy 41 retail branches in Texas from Citigroup.

Sept. 9, 2014: Corbat says Citigroup will invest 20 billion pesos ($1.3 billion) in its Mexico unit Banamex over four years and allocate 130 billion pesos for financing tied to the energy industry.

Oct. 14, 2014: Citigroup says it will exit consumer banking in 11 markets including Costa Rica, El Salvador, Guatemala, Nicaragua, Panama and Peru as Corbat seeks to simplify the firm and boost returns.

Oct. 15, 2014: Banamex is fined 30 million pesos by Mexico’s regulators.

Oct. 30, 2014: Citigroup says that it restated third-quarter results after taking a $600 million legal charge and is cooperating with regulators probing its foreign-exchange business.

Nov. 12, 2014: Citigroup says it will pay $1.02 billion to three regulators in the U.S. and U.K. in settlements related to foreign-exchange rigging cases.

Dec. 9, 2014: Citigroup’s legal costs and expenses to shrink operations under Corbat rise to $13.3 billion, more than half of the bank’s earnings in his 26-month tenure.

March 1, 2015: About two weeks before the Fed announces its decision on Citigroup’s capital plan, analysts and investors say Corbat might lose his job if the bank fails.

March 3, 2015: Citigroup agrees to sell its 103-year-old subprime lender OneMain Financial to Springleaf Holdings Inc. for $4.25 billion in cash.

March 5, 2015: The Fed says all 31 big banks subjected to the stress test have sufficient capital to absorb losses during a sharp and prolonged economic downturn.

March 11, 2015: Citigroup wins Fed approval for its plans to return capital to shareholders. It targets a quarterly dividend increase to 5 cents a share from 1 cent and a stock buyback of as much as $7.8 billion to start in the second quarter.

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