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Three top Citigroup executives could be ousted if bank fails 'stress test'
[NEW YORK] Three top Citigroup executives including Chief Executive Officer Mike Corbat will face "strong pressure" from investors to step down if the bank fails a critical "stress test" by the US Federal Reserve, the Financial Times reported on Sunday, citing two senior sources at the company.
The Fed rejected Citi's plans for dividends and stock buybacks last year after the bank failed an annual "stress test," a health check that measures how banks would hold up in a hypothetical crisis.
If the bank were to fail again, Mr Corbat would face pressure from investors to leave, along with Chief Financial Officer John Gerspach and Brian Leach, head of franchise risk and strategy, the Financial Times reported, citing two executives who spoke separately and anonymously.
Citi's board would also have little sympathy for the three top executives if the bank was to fail another stress test, the Financial Times reported, citing analysts.
A Citi spokesman could not be immediately reached by Reuters.