The firm won’t seek permission to increase payouts in its 2012 proposal to regulators, and 'will make decisions regarding the 2013 capital plan later this year', it said Friday in a statement. 'Citi will continue to build its capital levels for the benefit of our shareholders'.
'This is Pandit bowing to reality', said Matthew McCormick, who helps oversee $6.2bn at Bahl & Gaynor Inc. in Cincinnati. 'They don’t have the ability to return capital to the shareholders that they thought they would'.
In the meantime, Reuters reports that Credit Suisse continues to seek private banking acquisitions such as its purchase of Brazilian asset manager Hedging Griffo, the unit's head Hans-Ulrich Meister was quoted as saying over the weekend.
Finally, The Telegraph reports that ICAP, the inter-dealer broker led by Michael Spencer, has cut executive pay and overhauled its remuneration system amid fears it could face a shareholder rebellion at its annual meeting next month.
The company, which saw 33.5% of shareholders reject its pay package last year, said directors will now in future have to clear 'substantially higher hurdles' to get their bonuses.