Citigroup names McQuade to lead new application to Fed: Memo

Citi CEO issues memo on Fed rejection

Citigroup said on Thursday that Gene McQuade, a bank executive who was retiring to become a director, will lead a new push to win permission from the Federal Reserve to pay higher dividends and buy back stock.

The announcement came in a memo to employees from CEO Mike Corbat, who last week said the Fed's rejection of Citigroup's plan to distribute capital "is a call to action for our firm."

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Before the Fed objected to the plan, Citigroup had said McQuade would retire as chief executive of Citibank, the company's main operating subsidiary, and be nominated to the company's board of directors.

McQuade will oversee the so-called CCAR application process to the Fed for the next year, according to the memo.