NEW YORK (Reuters) - Citigroup Inc (N:C) for the first time understands requirements for the next Federal Reserve stress test of its capital thanks to the most complete instructions yet from the regulators, chief financial officer John Gerspach said on Thursday.
Gerspach, speaking at an investor conference, said this is "the first time leading into the test that we actually understood what the Fed is looking for."
In March Citigroup failed in its last annual bid to the Fed for permission to use capital to buy back stock and pay higher dividends. The failure, the second for the company, has hurt Citigroup shares and put pressure on executives.
Gerspach said regulators have been helpful recently in written descriptions and in conversations about what the bank must do to show it has the strength to distribute capital and still withstand economic stress.
(Reporting by David Henry in New York)