Northern, WI 1/6/2013 (USAMarketbuzz) –According to sources Citigroup Inc. (NYSE:C) has put forward a request to the regulators to grant the consent for the company to buy back its shares. They have advised the number of the shares to be bought back will be “minimal” and the sole reason for doing the same is Citigroup Inc. (NYSE:C) intends to increase the returns for the shareholders.
The request is forwarded as a part of the yearly capital plan and the leaders – Michael O’Neill and Michael Corbat, the Chairman and CEO of Citigroup Inc. (NYSE:C) are confident that the draft will not be disapproved. Most of the banks are expected to submit their respective annual plans to the Federal Reserve on Monday.
In November last year JPMorgan Chase & Co. (NYSE:JPM) bank was allowed to resume the buyback of shares. This was suspended by the bank in May due to the financial loss faced by the company.
Though there is optimism in Citigroup Inc. (NYSE:C) for being able to receive the approval, last year the annual plan was disapproved by the Federal Reserve.
The decision is still awaited and will be advised by the regulators. The future actions by the Citigroup Inc. (NYSE:C) will depend on this decision.
The shares of Citigroup Inc. (NYSE:C) were up by 2.51% to close at $42.43
The shares of JPMorgan Chase & Co. (NYSE:JPM) were up by 1.77% to close at $45.36.