This is an excerpt from a Reuters article on April 22nd:
The Fed apparently turned down the capital plan because of multiple issues with Citigroup processes for managing its capital and testing risk in stressful scenarios, said Corbat, citing conversations with regulators. He and O'Neill said the rejection did not seem to reflect a disagreement with Citigroup's strategy or business model.
Corbat said Citigroup will spend more money on staff and information systems to upgrade its capital planning tools in time for the Fed's next annual review in early 2015. The spending will be funded through cost-cutting and productivity gains in other areas, he said.
Costs have been a chronic problem for the company and Corbat has told executives reducing expenses is their number one priority.
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