Fed extends deadline for major banks' plans

Federal Reserve building, Washington.
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The U.S. Federal Reserve on Tuesday gave four banks more time to resubmit capital distribution plans it had earlier objected to, saying this would give the firms more time to address capital planning weaknesses.

The four banks, which had asked for the extension, are Citigroup, HSBC North America Holdings, RBS Citizens, and Santander Holdings USA.

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The banks were originally scheduled to submit their plans by June 26, but now have until Jan. 5, 2015.

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The firms will not be able to increase their capital distributions to shareholders, such as dividends and share buybacks, until the new plans are approved.

—By Reuters