ML-Implode News - Stress Tests Round 2: Citi Fails Fed's Most Important Exam, 25 Banks Pass

Why did Citi fail? Apparently it didn't to enough to improve areas regulators had previously asked Citi to pay attention to... [as a result,] Citigroup's capital plan was rejected by the Fed meaning it can't go ahead and repurchase $6.4 billion shares nor increase its dividend to $.05.
...
The areas the Fed wasn't impressed with include Citigroup's ability to project revenue and losses under a stressful scenario for material parts of the firm's global operations, and its ability to develop scenarios for its internal stress testing that adequately reflect and stress its full range of business activities and exposures... Another ding against Citi was likely its recent problems in Mexico. The bank was faced rather suddenly with fraudulent dealings by a client tied to Mexico's oil industry. The issue forced Citi to revise its 2013 earnings.
...
The CCAR results follow last week's Dodd-Frank Act stress test results, DFAST...
The difference between DFAST and CCAR involves capital action plans--what banks do with their capital for shareholders, i.e. offer dividends or buyback stock... The CCAR tests are watched by investors more closely because they determine what banks will do with their dividend and buyback plans for the next four quarters.

Relevant:

Stress Tests Round 2: Citi Fails Fed's Most Important Exam, 25 Banks Pass