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Washington (AFP) – The Federal Reserve approved the capital plans of 25 major U.S. banks after stress tests Wednesday, but turned down those of five others, including Citigroup’s.

The Fed said four of the five — Citi, HSBC North America, RBS Citizens Financial and Santander Holdings USA — had “qualitative” shortfalls in their capital foundations, while the fifth, Zions Bancorp, had failed the stress test with its basic capital ratio falling under the minimum.

The objection means the five cannot move ahead with any increase in capital distributions — dividend payments, share buybacks and other moves — without strengthening their capital foundations to Fed standards.

These bank holding companies (BHCs) “are not permitted to implement their requested plans for increased capital distributions,” the Fed said.

They “are required to resubmit their capital plans to the Federal Reserve following substantial remediation of the issues that led to the objections.”

But the Fed said the five are permitted to continue with existing capital distribution programs.

Of the five, Zions Bancorp was the only one to fail a stress test — an examination to see how it would hold up under a severe economic crisis.

As announced last week, its basic capital strength fell below the five percent threshold in the test.

AFP Photo/Emmanuel Dunand

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From left Reps. Paul Gosar, Marjorie Taylor Greene, Matt Gaetz, and Louis Gohmert

Screenshot from The Hill video

Reprinted with permission from AlterNet

Rep. Marjorie Taylor Greene (R-GA) and three other “Sedition Caucus” Republicans held a press conference Tuesday allegedly to decry the conditions at the D.C. jail, which is housing accused suspects awaiting trial for actions during the January 6 Capitol riot. But Greene and her three co-members used the event primarily to further false far-right claims about the insurrection, while wrongly claiming they are being “persecuted” by the government – a talking point Russian President Vladimir Putin has repeatedly used.

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Danziger Draws

Jeff Danziger lives in New York City. He is represented by CWS Syndicate and the Washington Post Writers Group. He is the recipient of the Herblock Prize and the Thomas Nast (Landau) Prize. He served in the US Army in Vietnam and was awarded the Bronze Star and the Air Medal. He has published eleven books of cartoons, a novel and a memoir.

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