Corbat's response? He would take the new shareholders down to the U.S. Federal Reserve so they could see the limitations he faces.
"He was confident that they would not have any success with getting the regulators to look kindly on their plans," said Charles Peabody of Portales Partners, recounting his March meeting with Corbat.
Reuters reports that the Fed's tight control over capital distributions, business plans and interest rates is a challenge for all big U.S. banks today. But Citigroup may be the best example of how the Fed's efforts to make the banking system safer are tying management's hands and frustrating shareholders.
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